Discounters and Online Retailers Gain Ground Amidst Traditional Supermarkets’ Struggles

  • UK food and grocery market expected to reach £174.5bn by 2024
  • Big Four grocers set to lose 1.1% of total market share by 2024
  • Discounters and online pureplays forecasted to grow at 25% and 55.1% respectively
  • Lidl’s strong performance in Christmas trading period
  • Aldi and Lidl expansion plans within the M25 area
  • Major supermarkets must focus on sustainability and retailer ethics

The UK food and grocery market is projected to grow by 15% between 2019 and 2024, reaching a value of £174.5bn, according to GlobalData. However, the ‘Big Four’ grocers – Tesco, Sainsbury’s, Morrisons, and ASDA – are expected to lose 1.1% (£1.9bn) of the total market share by 2024. While grocery sales for these major supermarkets are forecasted to grow at a rate of 12.6%, discounters and online pureplays are set to experience significant growth, with a 25% and 55.1% increase respectively. Thomas Brereton, GlobalData’s retail analyst, highlighted that Lidl’s strong performance during the recent Christmas trading period demonstrates the ongoing appeal of discount stores. Despite slowing like-for-like sales growth for Aldi and Lidl, both retailers have plans to expand within the M25 area in the coming years. Brereton emphasized that traditional supermarkets must remain competitive on price and address consumer concerns about sustainability and retailer ethics to prevent further market share decline.

Factuality Level: 8
Factuality Justification: The article provides accurate information from a reputable source (GlobalData), presents relevant data and statistics, and offers insights from an expert in the field. However, it could benefit from more context on the overall state of the UK grocery market and potential challenges faced by the Big Four grocers.
Noise Level: 6
Noise Justification: The article provides relevant information about the growth of the UK food and grocery market and the changing dynamics between traditional supermarkets and discounters. However, it could benefit from more in-depth analysis or discussion on the reasons behind this shift and potential long-term consequences for both types of retailers.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the impact of changing market share in the UK food and grocery industry on major supermarkets like Tesco, Sainsbury’s, Morrisons, and ASDA, as well as discounters Lidl and Aldi. This can affect their financial performance and stock prices.
Financial Rating Justification: The article discusses the growth of the UK food and grocery market and how it will impact the market share of major supermarkets and discounters, which can have an effect on their financial performance and stock prices.
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