Discount Retailers Thrive Amid Rising Sales and Competition

  • Grocery price inflation decreased from 17.5% to 17.3% in the four weeks to April 16, 2023
  • Aldi secured a 10% market share, with Lidl at 7.6%
  • Lidl had the fastest growth at 25.1%, followed by Aldi at 25.0%
  • Asda led with a 14.0% market share and 8.8% sales increase
  • Tesco and Sainsbury’s both saw 8.7% sales growth, holding 27.0% and 14.9% shares
  • Morrisons maintained an 8.7% share with growing sales
  • Co-op increased by 2.7%, reaching a 5.7% market share
  • Waitrose’s sales rose 3.2%, best since June 2021 at 4.5% share
  • Iceland matched 9.4% growth, keeping its 2.2% share
  • Overall take-home grocery sales grew by 8.1% in April
  • Own label lines show higher value with 13.5% growth and 46% increase in very cheap options
  • Consumers shop at multiple retailers, benefiting discounters like Aldi and Lidl

Grocery price inflation has decreased from 17.5% to 17.3% in the four weeks leading up to April 16, 2023, according to Kantar data. Aldi and Lidl achieved record market shares of 10.1% and 7.6%, respectively. Lidl had the fastest growth at 25.1%, followed by Aldi with 25.0%. Asda led with a 14.0% share and 8.8% sales increase, while Tesco and Sainsbury’s both saw 8.7% growth, holding 27.0% and 14.9% shares. Morrisons maintained an 8.7% share. Co-op grew by 2.7%, reaching a 5.7% market share. Waitrose experienced a 3.2% sales increase, its best performance since June 2021 at 4.5%. Iceland matched the 12-week growth rate of 9.4%, keeping its 2.2% share. Overall take-home grocery sales increased by 8.1% in April. Fraser McKevitt, Kantar’s head of retail and consumer insight, stated that while this drop in inflation is good news for shoppers, it doesn’t necessarily mean lower prices. Own label lines are growing at 13.5%, with very cheap options soaring by 46%. Consumers continue to visit multiple retailers, benefiting discounters like Aldi and Lidl.

Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about grocery price inflation, market shares of different supermarkets, and insights from an expert in the field. It presents data from a reputable source (Kantar) and discusses trends in consumer behavior without any clear signs of sensationalism or personal opinion.
Noise Level: 7
Noise Justification: The article provides relevant information about grocery price inflation and market shares of different supermarkets in the UK. However, it contains some repetitive information (e.g., mentioning that falling grocery inflation doesn’t mean lower prices) and could benefit from more analysis or context on the long-term trends and consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of grocery price inflation on supermarket sales and market shares of various retailers, including Aldi, Lidl, Asda, Tesco, Sainsbury’s, Morrisons, Co-op, Waitrose, and Iceland. It also mentions Ocado’s online market performance.
Financial Rating Justification: The article discusses financial topics such as grocery price inflation and its impact on supermarket sales, which can affect consumer spending and the profitability of these companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk