Aldi and Lidl are Britain's fastest-growing supermarkets

Marcus Newton
January 10, 2018

Kantar said that, across the grocery retailers, households shrugged off economic worries to spend an average £1,054 over the period.

The other members of the Big 4 - Sainsbury's, Asda and Morrisons - all saw gains of about 2% as overall sales for the sector rose 3.8% to £28.9bn compared to past year.

"Rising to the challenge, Aldi and Lidl collectively managed to attract almost one million additional households during the past three months. Despite a successful festive period, Tesco is still growing behind the market with a 0.2 percentage point fall in market share to 28.0%", McKevitt said.

Tesco was the the fastest growing of the big four supermarkets in the 12 week period, helped by a 6.4% increase in sales of standard Tesco own-label.

Fellow discounter Lidl also increased its market share, from 4.4 per cent to 4.9 per cent.

That is the lowest level of promotional activity at Christmas since 2009.

Aldi's share of the market went up to 7.5 per cent over the festive season, from 6.9 per cent the year before. According to Kantar, the fact that Christmas Day fell on a Monday this year helped boost Tesco Express, as larger supermarkets were forced to comply with restricted Sunday opening hours. Morrison Supermarkets PLC's (MRW.LN) market share fell to 10.7% from 10.9%, although sales rose 2.1%.

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According to Nielsen, Tesco recorded the largest sales of the big four United Kingdom supermarkets in their busiest period of the year and had the most improved performance over the final 12 weeks of 2017.

Figures from the BRC also out on Tuesday showed United Kingdom retailers saw a 0.6% like-for-like sales rise in December but the report highlighted how the "severe pressure" on spending was weighing heavily on some firms much more than others.

Biggest ever online Christmas, sales up by 4.9%. This compares to sales growth for the big four United Kingdom supermarkets of 3.1% for Tesco PLC, 2.0% for J Sainsbury PLC, 2.1% for WM Morrison Supermarkets PLC, and 2.2% for Asda, part of Wal-Mart Stores Inc.

Tesco was the biggest performer in the Big Four, followed by Asda, which saw sales rise by 2.2%. This is against the backdrop of the retailer's continuing strategy of moving away from promotions, selling 5.6% fewer items on offer than during the same period previous year.

Sales at Waitrose increased by 2.3%, but fell by 0.2% at Co-op, as the retailers captured 5.2% and 5.8% of the market respectively.

Overall online supermarket sales enjoyed their biggest ever Christmas: up 4.9 per cent year-on-year. Online sales grew 5 per cent, resulting in the channel hitting a high of 6.4 per cent share of all grocery sales in the final quarter.

"It was in stark contrast to many high street retailers who saw less footfall and sales declines".

Other reports by MaliBehiribAe

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