Fev 7, 2017

Aldi overtakes Co-op to become UK's fifth largest grocer

German-owned Aldi has overtaken the Co-operative as Britain's fifth biggest supermarket, industry data shows.

Aldi's sales rose 12.4% year-on-year in the 12 weeks to 29 January, taking its market share to 6.2% and ahead of the Co-op's 6%, according to research firm Kantar Worldpanel.

It underlines the challenge the big retailers have faced from discounters such as Aldi and its German rival Lidl.

Sales at Lidl rose 9.4%, taking its market share to 4.5%.

"Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year," said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel.

Healthier ranges

Ten years ago ago Aldi was only Britain's 10th largest food retailer, accounting for less than 2% of the grocery market.

Despite being overtaken by Aldi, Co-op's 2% sales increase was well ahead of the market, continuing a run of growth stretching back to July 2015. 

Mr McKevitt said: "A significant own label sales increase of 7% was behind [Co-op's] strong performance, with healthier ranges successfully catering to consumers' good intentions for the new year."

Tesco remains the clear leader with more than 28% of the UK market. Its sales rose 0.3% over the 12-week period, which included the busy Christmas season.

BBC News