Across the Channel, German hard-discount is benefiting from rising prices. Aldi could soon become Britain’s fourth largest supermarket chain, reports say The Telegraph. According to the latest figures from panelist Kantar, Aldi had a 9.1% market share in the three months to August 7, up from 8.2% a year earlier. While Morrisons, one of “big fourThe country’s retailer with Tesco, Sainsbury’s and Asda, saw its market share fall to 9.3% from 10% a year earlier, within reach of the German chain.
Germany’s other discount king, Lidl, also gained ground in the UK, rising to 7% market share from 6.1% a year earlier. Faced with rampant inflation, British consumers are increasingly switching from one brand to another to find the best prices, with Aldi and Lidl capitalizing on the trend. In addition, they favor private label products more, which make up the bulk of the range of the two German discounters: according to Kantar, sales of private label products have increased by 19.7% over the last month.
Inflation at its highest point
It is in particular products such as butter, milk and poultry, which experience strong price variations, that benefit discount stores. At its highest level in 40 years, the rate of inflation in the United Kingdom reached 10.1% annually in July, mainly driven by increases in food prices, the Office for National Statistics (ONS) announced on Wednesday. Inflation already reached 9.4% in June and could exceed 13% in October, when drastic increases in energy prices are expected, according to Bank of England forecasts.
Source: BFM TV
