Nov 15, 2016

Tesco makes gains as Aldi and Lidl growth hits five-year low

UK's biggest supermarket only one of big four in growth, but discounters continue to be fastest expanding grocers in market


Aldi and Lidl have sunk to their slowest growth rate since 2011 as Tesco almost doubled its pace of expansion.

The UK's biggest supermarket gained market share for the second month in a row as sales rose by 2.2% in the 12 weeks to 6 November, up from 1.3% reported last month, making it the only one of the big four chains in growth, according to the latest data from Kantar Worldpanel. Tesco increased market share to 28.2%, up from 27.9% a year ago.

Aldi and Lidl continued to be the fastest expanding grocers in the market. But their growth slid to 11.4% and 8.4% respectively, according to Kantar. Some analysts believe sales in the chains' established stores are flat or even down on last year.

Fraser McKevitt, head of retail and consumer insight at Kantar, said the discounters were being hit as they were now up against very strong rates of growth a year ago, while Tesco's resurgence had made life more difficult.

Sarah Butler