Lidl has taken the lead over its competitor Aldi, according to recent NIQ data.
- Lidl’s sales surged by 8% over a 12-week period, whereas Aldi saw a 1% decline.
- Aldi’s market share decreased from 10.8% to 10.4%, while Lidl’s rose from 7.2% to 7.6%.
- Both Lidl and Aldi are attracting new customers, but average spending per visit has decreased.
- Mike Watkins of NIQ highlights the plateau in market share, emphasizing the need for new store openings for growth.
Lidl has significantly outpaced its rival Aldi, marking an impressive 8% increase in sales over the 12 weeks leading up to June 15. In contrast, Aldi experienced a 1% dip in revenue during the same period, as reported by NIQ data. The contrasting fortunes of these two discounters highlight the changing dynamics in the retail landscape.
During the past year, Aldi enjoyed the highest growth rate among all retailers, which sets a challenging benchmark for comparison this year. Consequently, Aldi’s market share has slipped from 10.8% to 10.4%. Meanwhile, Lidl has leveraged its strategic initiatives to enhance its market share from 7.2% to 7.6%, indicating a successful period for the retailer.
Despite both brands continuing to attract new shoppers and increased store visits, there has been a noticeable decline in average spend per visit compared to the previous year. This trend suggests that while customer interest remains strong, consumer spending patterns are shifting.
NIQ UK’s head of retailer and business insight, Mike Watkins, points out that the discounters’ market share has steadied, and future growth will hinge on new store openings and increasing visit frequency. As inflation-induced spending wanes, supermarkets are gaining back some of the consumer dollars that bolstered the discounters during the peak inflationary period. This shift might persist as the economic climate stabilizes over the next six months.
While discounters grapple with these challenges, other retailers such as Ocado and M&S have reported impressive gains, with Ocado’s sales jumping 12.6% and M&S seeing a 7.1% rise. Both retailers have gained significant market share, standing at 1.7% and 3.8% respectively. Meanwhile, traditional supermarkets like Sainsbury’s and Tesco have also seen a moderate increase in sales and market share, underscoring a more balanced competitive landscape.
Conversely, Asda has struggled, experiencing a 4.9% decline in sales and a drop in market share to 12.2%. The broader supermarket sector witnessed a slowdown of 1.1% in the last four weeks, a stark contrast to last year’s 12.1% growth, attributed to the previous year’s favorable summer weather conditions compared to this year’s wet climate. Watkins remains cautiously optimistic, suggesting that summer events like the Euros could provide a short-term boost to sales, particularly for drinks and snacks.
As the competitive dynamics shift, discounters like Aldi and Lidl must adapt to new consumer behaviors and economic conditions.
