Consumers head to discount supermarkets

21-08-2008

Consumers head to discount supermarkets
Discount supermarkets have dramatically increased their market share as consumers abandon the 'big four' grocers for cheaper deals.

The latest TNS Worldpanel grocery market share figures, for the 12 weeks ending August 10th 2008, show sales at Aldi and Lidl grew 19.8 per cent and 12.3 per cent respectively.

In the case of Aldi, this translated into a new record market share of three per cent, TNS said.

"It is worth noting that this growth is entirely driven by new stores and new shoppers – spend levels for existing shoppers remain unchanged and quite low compared with the top four (typical monthly spend per household is £45 for Aldi compared with £126 for Tesco)," market research company TNS said in the report.

Asda, which has traditionally focused marketing on its price credentials, grew ahead of the market, as did Morrisons, TNS added.

Despite advertising campaigns from Tesco and Sainsbury's to convince consumers of their value for money, growth at these grocers have fallen behind the total market.

Waitrose, which is positioned as selling more luxurious items, has also grown at a slower rate than previous months.

Food inflation is running ahead of the overall rate, at 12.3 per cent in July, according to the Office for National Statistics (ONS), and the latest GfK NOP consumer confidence index found 28 per cent of consumers have switched to a discount supermarket as a result.

The four main supermarkets have been attempting to stem the flow of consumers heading to discounters by slashing their prices on headline products such as milk.

However, Tesco was yesterday criticised by the Advertising Standards Authority (ASA) for misleading adverts implying it was cheaper than Asda.

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