According to data recently released by Kantar, Aldi has surpassed Morrisons and joined the list of the UK’s “big-four supermarkets” after seeing a 1.2% increase in market share over the past three months.
Since entering the UK market, Aldi and Lidl’s combined shares have grown to 16.1%.
By 2022, they doubled their size from 446 stores in 2013 to now over 950 stores around the UK.
Due to the rising energy and food costs, customers have become more price conscious. As a result, they have rushed to stores that offer the most affordable pricing as a way to combat the cost-of-living dilemma.
While people try to squeeze their budgets, Aldi and Lidl’s strategy was simple: offering extremely competitive prices (while selling their own-brand products).
Customers will not hesitate to explore their options for supermarkets in order to obtain the greatest deal for quality goods, especially in an environment where the nation is entering a recession.
Aldi and Lidl seem like they might have a strong Christmas season. To differentiate themselves from the competition, other supermarkets must use the same tactic by offering own brand products which will reduce production costs and benefit both sides eventually.
In the current climate, individuals try to minimize any unnecessary and luxury costs, which has badly affected the food delivery sectors as these services are no longer as popular as they were during the pandemic.
Being the top two stores on the list, Tesco and Sainsbury’s, it is a caution indicator.
In order to retain their consumer base coming to their stores, they now need to price match.
By Hatice Çobanoğlu, BeComAware Student Ambassador.
All BeComAware content is reviewed and approved by industry professionals.