Aldi is quickly becoming one of the biggest threats in the supermarket industry after knocking the Co-operative out of fifth place! With sales continuing to increase, Aldi now has 6.2% share in the supermarket arena, says research company Kantar Worldpanel.
The large retailers are struggling as discount stores such as Aldi and Lidl are gaining larger shares in the market.
The bottom line is that consumers are watching their spending. With the current state of the economy, it could take a turn for the worst at any time. People want to make sure that they are prepared and that means looking at their budgets and seeing where they can cut down.
“Aldi has opened a number of stores throughout the United Kingdom and is continuing to expand. Within a year, Aldi has gained a further 826,000 customers.” States the head of retail and consumer insight for Kantar Worldpanel Fraser McKevitt.
Within ten years, Aldi has grown from being the UKs 10th largest food retailer with a 2% market share.
Although Co-op has been overtaken by Aldi, they still had a good year with a 2% increase in sales.
Mr McKevitt stated: “Co-op’s strong sales were as a result of a healthier selection of foods and sales of their own label which catered to the needs of their consumers during the holiday season.”
Tesco continues to maintain its lead with over 28% of the UK market. Its sales increased by 0.3% over the 12 week period leading up to Christmas.
This month, Aldi will have opened its 700th store, and it plans to continue its expansion and open 300 over the next five years.
Both Aldi and Lidl together have made a big impact on the supermarket industry, for them it has been a positive impact, but a negative one for its competitors.