Discounters Aldi and Lidl outperform grocery market

GERMAN discounters Aldi and Lidl are making significant inroads in the Irish grocery market with Lidl matching long-standing retailer Superquinn’s market share for the first time.

Up-to-date data on the Irish grocery market from Kantar Worldpanel covering the 12 weeks ending June 12, 2011, shows Aldi and Lidl posted significant sales growth of 27% and 9% respectively, the discount retailers outperforming the market. Aldi increased its share from 3.4% last year to 4.3% and Lidl improving on last year’s 5.7% share to secure 6.1% of the market. Lidl’s 6.1% of the market is now the same as Suprequinn who have fallen from 6.7%, according to Kantar.

The march made by Aldi and Lidl is impressive in a market which grew by just 1% as shoppers sought value. Commercial Director at Kantar Worldpanel Ireland David Berry, said: “Customers are adopting savvy shopping tactics in response to increasing pressures on household budgets. Shoppers are buying fewer groceries to counter product-driven price inflation or ‘trading down’ to cheaper, essential products and switching to the discount retailers. Without the World Cup to boost spending in the market we may see a real possibility of sales decline throughout the summer.”