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Grocery market growth has slowed from 3.8% to 3.2% according to the latest data release from Kantar Worldpanel, pulled down mainly by weaker volume growth.

Inflation constant as volumes dip

In the 12 weeks to 7 October 2018, the market grew by 3.2%, down from 3.8% in the previous month when the period included the late June / early July heat wave and the boost from the World Cup. However growth remains comfortably above the average market  of the last five years (+1.7%), supported by inflation of 2.0% (unchanged on the previous month).

Discounters buck the downturn

While market growth has slipped, this is not the case for the leading food discounters. Aldi's growth has picked up from 13.9% to 15.1%, and Lidl from 8.3% to 10.0%. This outcome follows last week's release of Aldi UK & Ireland's 2017 results in which it reported sales had topped £10bn for the first time and that it planned to open 130 more stores by 2020, taking its total to over 900. Find out more about how to grow your business with Aldi at our Aldi Category Immersion Summit on November 6th.

Lidl is also pressing ahead with a faster rate of store openings while driving like-for-like sales. Last week it announced the opening of a number of pop-up bars to promote its popular products as the festive season draws nearer.

Strong growth from the Co-op

Aside from Ocado, Co-op was the only other multiple to gain market share. Its growth of +7.0% was driven by step up in footfall. An extra 265,000 households visited a Co-op store over the last 12 weeks and its own brand offer has proved particularly popular, with shoppers buying 10% more of these ranges than this time last year.  Tickets are selling fast for our Co-op Trade Briefing on November 22nd when the leadership team will share their commercial plan and what it means for suppliers.

Asda and Morrisons lead the Big Four

Asda and Morrisons both grew sales by 2.4%. At Asda, investments in updating its private label offer drove sales while at Morrisons higher sales of brands and fewer promotions boosted its growth. Despite this Morrisons still sells more products on promotion than any other operator according to Kantar. 45% of its sales are made on some kind of deal.

Tesco's growth has slowed to 0.9% but the market leader will be cheered by the popularity of its 'Exclusively at Tesco' range which Kantar reports are now bought by one in four British shoppers. This proportion is likely to increase as Tesco begins to market the range fully now it has been fully launched.

 

 

12 weeks to 8 Oct 2017 (% share)

12 weeks to 7 Oct 2018 (% share)

Sales growth (Y-o-Y %)

Tesco 28.0 27.4 0.9
Sainsbury's 15.8 15.4 0.6
Asda 15.5 15.3 2.4
Morrisons 10.3 10.3 2.4
Aldi 6.8 7.6 15.1
Co-op 6.2 6.4 7.0
Lidl 5.2 5.6 10.0
Waitrose & Partners 5.3 5.2 0.1
Iceland 2.1 2.1 4.8
Ocado 1.1 1.2 7.5
Other multiples 1.8 1.8 7.8
Total symbols & independents 1.8 1.7 -3.7
       

Source: Kantar Worldpanel

 

IGD Food-to-Go 2018

8 November 2018, London Understand how the food-to-go market is evolving, where the opportunities lie and how industry leaders across Europe are leveraging these trends.

  

Aldi UK and Ireland's results for the full year to 31 December 2017 show a rise in profits for the first time in four years. Profits grew to £265.9m, up 26% on the previous year.

Sales exceed £10bn as Aldi attracts new customers

Another year of double digit growth for Aldi's UK and Ireland business with sales up 16.4% to £10.2bn. This performance reflects the discounter's growing customer base which has increased by 1.1m customers in 2017 to 15.8m.

Average basket size increases as Aldi invests in product offer

Enhanced and expanded ranges have attracted shoppers. Last year Aldi introduced over 200 new lines and made changes to 30% of its products to enhance quality perceptions. This strategy has resulted in shopper penetration within more ranges and an increase in average basket size to over 19.

Aldi's top tier brand Specially Selected continues to show a positive performance, with the range generating over £1bn sales in 2017.

Investing for the future

  • Expanding the estate: 130 new stores by 2020, taking total to over 900
  • Distribution capabilities: larger estate to be supported with three new distribution centres (Sheppey, Sawley, Bedford) and extension of existing distribution centres (Darlington, Bathgate)
  • Project Fresh: remains committed to investing £300m into more space in-store for fresh and chilled
  • Conversion to new Project Fresh format: 200 stores by the end of 2018 and 380 more by the end of 2021
  • Commitment to British: source more British products through expansion of UK supply base

Want to know more?

IGD Aldi Category Immersion Summit 2018

6 November 2018, Birmingham

A new category immersion capability event across eight Aldi buying areas. Find out how you can share in the continued growth of this ambitious retailer.

Find out more »

Roman Heini will join Lidl’s senior management team in October after spending 18 years with Aldi. Lidl has said it considers Heini a ‘valuable addition’ to the team.

A wealth of experience

Heini has spent the last 18 years employed by Aldi in several senior positions. He was largely responsible for Aldi Süd's modernisation programme as well as its expansion in the UK, Ireland and Switzerland.

From 2010 to 2014 Heini acted as joint managing director for Aldi UK and Ireland with Matthew Barnes. Whilst Heini was managing director, Aldi UK and Ireland turnover increased by 35.7% to £5.27bn in 2013.

Heini joined the Board of Directors at Aldi Süd in 2015 but resigned with ‘immediate effect’ in 2017.

Heini’s new position is unknown

Heini will officially join Lidl in Neckarsulm on 1 October 2018. However, his role and responsibilities remain unclear.

Presentations

17/10/2018
Kantar market shares are generated using Kantar Worldpanel’s till-roll scanning methodology and extrapolated using a sample of 30,000 households. Figures are calculated over a rolling 12 week period and include VAT.
16/10/2018
Reviewing the retailer’s priorities and plans 2018-2023
09/10/2018
An essential summary of trading priorities, latest developments, and other key commercial insights for Aldi.
02/10/2018
We visited Aldi's unique testbed store in Glascote to understand how the discounter is focusing on creating more efficiencies in-store.
View all presentations

Key presentations

Latest Aldi UK annual results show a strong financial performance. In this report we review factors driving growth and explore the outlook for Aldi’s UK business between 2018-2023 as it continues to maintain its favourable position within the country’s retail market.

We combine our latest shopper insight with our retail expertise to explore the accelerators and inhibitors to growth in the UK discount channel.

An essential summary of trading priorities, latest developments, and other key commercial insights for Aldi.

6 November 2018, Birmingham
A new category immersion capability event across eight Aldi buying areas. Find out how you can share in the continued growth of this ambitious retailer.

We've developed a single, universal methodology for calculating food and consumer goods retail data, supported by our programme of primary and secondary research. This makes Retail Analysis the most reliable and robust source available for data of this type. 

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