Aldi has entered the top four of the UK grocery industry for the first time, which shows customers are looking for more competitive pricing as the cost-of-living crisis worsens.
According to retail analyst Kantar, the German discounter increased its share of the UK grocery market to 9.3 percent in the 12 weeks to Sunday, September 4, taking the spot from Morrisons as the country’s fourth largest supermarket.
It ends the traditional industry giants Tesco, Sainsbury’s, Asda, and Morrisons’ long-standing hold over the supermarket sector.
The rise of Aldi in the rankings shows consumers are changing their shopping habits as the cost of living rises and household finances become more difficult.
According to Kantar, UK grocery inflation was 12.4 percent in August.
This translates as an increase in the average annual grocery bill of £571, from £4,610 to £5,181.
The analyst says prices are rising particularly quickly for milk, butter, and dog food, which increased by 31 percent, 25 percent, and 29 percent, respectively, last month.
High energy prices have led to annual consumer price index inflation increasing to 10.1 percent in July and is expected to increase by just over 13 percent in the fourth quarter, according to the Bank of England.
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Additionally expanding in August, fellow discounter Lidl saw a rise in sales of 20.9 percent and increased its market share of the UK grocery market to 7.1 percent.
The German company had its best sales performance since October 2014, and for the fourth consecutive month, Lidl was the fastest-growing grocery chain in the UK.
Source: The Herald