Discount supermarket sales rocket as food prices continue to rise adding an average £27 to the bill
Low-cost grocers such as Aldi and Lidl have seen their trading increase by nearly 20 per cent
THE rising price of food is feeding the growth of the discount supermarkets, a new survey shows.
Low-cost supermarket ALDI saw its sales rocket by 19.8 per cent in the 12 weeks to May 21, giving it a seven per cent UK market share, according to retail analysts KANTAR WORLDPANEL.
Fellow German upstart LIDL was snapping at its heels with an 18.3 per cent increase in sales, giving it a five per cent market share.
In comparison, market leader Tesco — with a 27.8 per cent share — saw its sales rise by just 1.8 per cent.
Experts have put the rise of the discounters down to the cost of living squeeze. Kantar retail’s Chris Hayward said: “Consumers are starting to feel the pinch as prices continue to rise, with the average household spending an additional £27 on groceries during the past 12 weeks.”
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The figures mean Aldi is closing the gap on the UK’s fourth-biggest supermarket MORRISONS.
Meanwhile, inflation figures from retail trade body the BRITISH RETAIL CONSORTIUM have underlined the pressure food shoppers are under.
According to the BRC, which looks at the price of 500 everyday goods, food inflation picked up to hit 1.4 per cent in May — up from 0.9 per cent in April.
Inflation on non-food items was down, however. The figures mean that food prices are now rising at their fastest rate for more than three years at a time when wages are static.
The BRC blamed the 16 per cent drop in the value of the Pound since last June’s Brexit vote for pushing up the price of food imports.
BRC chief exec Helen Dickinson said: “The weaker pound has already started feeding through into food prices, although food price inflation this month is still well below the price increases being faced by retailers.”
Meanwhile, among the big-four supermarkets TESCO was the strongest performer over the past three months. Britain’s number one grocery retailer secured a 27.8 per cent market share, ahead of rivals SAINSBURY’S on 15.9 per cent and ASDA on 15.44 per cent.