Recent data reveals Lidl’s significant lead over Aldi, driven by substantial sales growth.
- Lidl’s sales surged 8% in a 12-week period, while Aldi experienced a 1% revenue decline, per NIQ data.
- Aldi faced challenging comparisons, having led growth in the same period last year.
- Despite both chains attracting more shoppers, the average spend per visit has decreased.
- Market dynamics suggest new store openings are crucial for future growth amid stabilised discounter market share.
In a notable shift within the retail landscape, Lidl has demonstrated a remarkable sales performance, achieving an 8% increase over a twelve-week period ending 15 June, as per data from NIQ. This growth starkly contrasts with Aldi’s 1% decline in revenue during the same timeframe, highlighting a significant divergence in the trajectories of the two discounters.
The current year’s context presents a demanding scenario for Aldi, which last year recorded the highest growth among retailers. Its market share has thus diminished from 10.8% to 10.4%, whereas Lidl’s market share has ascended from 7.2% to 7.6%.
Despite both Aldi and Lidl continuing to draw new customers and increase store visits, the average expenditure per visit has not matched previous levels. “Now that discounter market share has plateaued, their growth for the rest of the year will be more dependent on new store openings and encouraging more visits,” stated Mike Watkins, NIQ UK’s head of retailer and business insight.
Beyond the discounter segment, notable performances were recorded by Ocado and M&S, with Ocado achieving a 12.6% sales increase and M&S observing a 7.1% rise. Their market shares are currently at 1.7% and 3.8%, respectively.
Sainsbury’s and Tesco also experienced sales uplifts, with growth figures at 4.7% and 4.1%, respectively, and both retailers seeing a 0.3 percentage point increase in market share year on year. Conversely, Asda’s sales fell by 4.9%, resulting in a reduction of its market share to 12.2%.
The broader supermarket sector has shown signs of slowing, with sales dipping by 1.1% over the past four weeks compared to a 12.1% increase in the same period last year. Mike Watkins attributes this deceleration to the contrast between last year’s hot summer and this year’s wetter conditions.
However, there is optimism that ongoing warm weather and England’s recent success at the Euros might stimulate sales, particularly for items such as drinks and snacks.
The current dynamics within the supermarket sector suggest that discounters like Aldi and Lidl must adapt strategies to sustain growth in a stabilised market.
