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Waitrose, Aldi and Lidl take market share from Big Four

Published:  28 July, 2013

The Big Four supermarkets are under increasing pressure from both the hard discounters, Aldi and Lidl, and from mainstream rival Waitrose.

Figures released by Kantar Worldpanel, for the 12 weeks ending July 7, 2013, show that together Waitrose, Aldi and Lidl now account for 11.5% of the grocery market, up 3.2% on four years ago. It means the Big Four chains are having to increasingly compete harder for a contracting middle ground, said Ed Garner, retail analyst at Kantar.

Lidl's market share has grown to a record 3.1%, while Aldi sits at 3.6%. But it is the rise of Waitrose which will be particularly worrying for the major four groups as its growth rate of 10.9% is nearly three times the market average and it now has 4.8% of the grocery sector.

Of the Big Four supermarkets, only Sainsbury's has managed to not lose share in the past year, with year-on-year growth of 3.8%. Morrisons may not be gaining market share but it also showing signs of recovering turning sales growth of -1.7% in January into 1.8% growth now.

Kantar's research also suggests the Big Four's commitment to running price-matching campaigns is putting the focus firmly on the quality of its private label offer. The campaigns also mean shoppers are less likely to shop around as they feel they can get the same prices at different retailers.

The quality own-label ranges are doing well as a result, with both Tesco's Finest and Sainsbury's Taste the Difference ranges growing strongly. Equally, Kantar said Aldi's Like Brands only Cheaper campaign and Lidl's Taste Test are doing well to re-position their private label offer.