Data: Lidl leapfrogs Co-op as food inflation hits fastest rate in nearly a decade

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Both Aldi and Lidl’s grocery market share surged in February as spiralling food inflation hit its fastest rate of growth since late 2013.

Coronavirus supermarket shopper

Grocery sales for the 12 weeks to February 20, 2022, fell 3.7%

Grocery sales for the 12 weeks to February 20, 2022, fell 3.7% while food inflation for the same period hit 4.3%, according to the latest grocery market share data from Kantar.

Online sales for the period also took a dive, down 20% year on year over the past month alone as the final coronavirus restrictions were lifted in the UK.

With food prices soaring and online sales flatlining as customers returned to stores, both Aldi and Lidl benefitted, finishing the period as the joint-fastest growing grocers in the market.

Aldi increased its sales by 3.3% in the period and attracted an additional 1.3 million customers compared with 2021.

Lidl also grew sales by 3.3% and added 1 million new customers, overtaking the Co-op to become the UK’s sixth largest grocer for the first time.

Kantar head of retail and consumer insight Fraser McKevitt said that growing inflation combined with the worsening supply chain issues that have plagued retail for months are contributing to a real shift in consumer behaviour patterns built up over the pandemic.

“Apart from the start of the pandemic, when we saw grocers cut promotional deals to maintain availability, this is the fastest rate of inflation we’ve recorded since September 2013,” he said.

“Added to this, ongoing supply chain pressures and the potential impact of the conflict in Ukraine are set to continue pushing up prices paid by consumers.

“In terms of understanding how shoppers are responding, it’s a complex picture for the market this month. Households spent on average £26.07 less at supermarkets in February and own-label sales did better than brands for the first time in three months.”

McKevitt noted that the number of customers shopping for groceries online was also falling, with 835,000 fewer people doing so during the month of February compared with January.

“Own-label sales did better than brands for the first time in three months”

Kantar head of retail and consumer insight Fraser McKevitt

Aside from Aldi and Lidl, the majority of other grocers saw year-on-year sales slide over the period, although all grocers were up on two-year comparisons.

Tesco extended its run of market share gains, taking another 0.3 percentage points. It now accounts for 27.7% of the market.

Waitrose also grew ahead of its peers to hold its share of the market flat at 5%. Sainsbury’s market share is now 15.5%, Asda 14.6% and Morrisons 9.8%.

Co-op holds 5.7% of the market, Iceland 2.3% and independent retailers stand at 1.6%.

McKevitt said: “Supermarkets with a strong food-on-the-go offer will have enjoyed an added boost that is not reflected in the numbers as people picked up sandwiches, snacks and drinks while out and about again.”