Tesco struggles as Aldi grows market share

Latest groceries share data shows that the UK’s biggest supermarket, Tesco, is continuing to struggle, while the discounters plough ahead.

Tesco’s groceries market share dropped 4% in the 12 weeks to 17 August, taking its market share from 30.2% last year to 28.8%, according to Kantar Worldpanel.

Aldi in contrast, increased its share by 29.5% to 4.8% and Lidl by 18.3% to 3.6%, helped by more than half of UK households which visited their outlets in the past 12 weeks.

Of the big four retailers, Asda was the only one to grow ahead of the market, with an increase in groceries share by 1.2% to 17.2%. This was driven by its strategy to keep the price of every day essentials low, said Ed Garner, director at Kantar Worldpanel.

Morrisons saw a drop of 1.9%, while Sainsbury’s also struggled, with an increase of 0.3%, still below overall market growth.

At the premium end of the market, Waitrose was performing well, having increased its market share by 3.6% to 4.9%, driven by competitive offers on home deliveries and pushing its focus on quality and provenance, said Mr Garner.

Retailer price wars over the last few months have caused a deflation in the price of staple items, impacting on the growth of the overall grocery market, which has fallen to a 10-year record low of 0.8%, said Mr Garner.

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