The worsening economic conditions have also pushed supermarkets to focus on value, with budget retailers like Aldi and Lidl the main beneficiaries.
Shoppers seeking value opt for Lidl and Aldi over other supermarkets. Asda and Morrisons have been the clear losers in the market share battleA decade ago, three supermarkets reigned supreme in Britain. Tesco, Sainsbury's and Asda had more than half of the market share.The increase in online shopping means shoppers can look elsewhere and are increasingly looking beyond the traditional retailers.
In September 2022, Aldi became Britain's fourth largest supermarket after years of chasing the top retailers and since then has further consolidated its position. 'They're going for value and great quality. If you look at their marketing, that's really how they push their offers. While Lidl has trailed Aldi in market share for some time, in the 12 weeks to 4 August, Lidl sales rose 7.8 per cent, gaining an extra 0.4 percentage points worth of market share.
Jonathan De Mello of JDM Retail says: 'Asda have always focused on value and that's played into the hands of the discounters that could just undercut them on price, and that's where they really struggle.''If you think about Tesco and if you're a Clubcard shopper theres so many discounts on offer that you can get to a point where they're undercutting Asda on price.'
Critics say that quality and customer experience have deteriorated since the private equity takeover. Like Asda, Morrisons' proposition has been solely focused on value which means they too have fallen victim to the discount retailers.Boss Rami Baitieh, who joined last November from Carrefour France, admitted the supermarkets' performance since the pandemic had 'not been good enough'.
Their sheer presence on the high street, convenience store portfolio and loyalty schemes mean they are in prime position to keep consolidating their market share. Katar figures show that Tesco retains 27.7 per cent of the market, down from 28.8 per cent in 2014, while Sainsbury's has 15.3 per cent, down from 16.4 per cent.
Steel predicts it will be difficult for Aldi and Lidl 'to grow at the levels they've grown at over the last year or so'.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
We tried supermarket versions of Shreddies, this one's just as goodWe tried the cereal from Asda, Aldi, Lidl, Sainsbury's, Morrisons and Tesco
Read more »
We tried digestives from every supermarket, McVitie's is taking the biscuitWe tried the biscuits from Morrisons, Asda, Aldi, Lidl, Tesco and Sainsbury's
Read more »
We tried juice from every supermarket, this is where you should splash your cashWe compared juices from Tesco, Asda, Aldi, Lidl, Morrisons and Sainsbury's
Read more »
Tesco, Asda, Iceland and Morrisons issue food recalls on crisps, sauces and moreFood recalls are issued when a product could make shoppers unwell, but can be easily avoided if the product is returned to the store it was bought from for a full refund.
Read more »
Asda, Tesco and Morrisons shoppers who keep milk in door of fridgeShoppers have been dealt new information over where to store their fridge - and they're not happy
Read more »
Petrol drivers using Asda, Tesco and Morrisons dealt £156 warningThe RAC is warning drivers to be careful where they fill up this week
Read more »