Comment: Aldi’s rising sales show Tesco needs to stand for something

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Kantar Worldpanel data has revealed that retailers at both the upscale and bargain ends of the supermarket spectrum are faring well, with particularly strong figures for Aldi and Waitrose.

In terms of market share the German discount supermarket chain is poised to overtake the decidedly upmarket Waitrose.

Aldi’s sales rose by 32.2% in the 12 weeks to July 20 giving it a share of 4.8%, just behind Waitrose’s 4.9%.

It’s tempting to think that these two grocers cater for entirely different groups of consumers that sit at opposite ends of the social spectrum – Aldi shoppers are frugal and Waitrose shoppers are wealthy, right?

However, I believe that fragmentation of basket means that this simply isn’t the case. There are great expectations for the two retailers since the truth is that shoppers are becoming increasingly promiscuous.

You’re as likely to find Miss Haversham picking up some discounted dusters in Aldi as you are a young Pip being sent to get a premium pork pie in Waitrose.

The old stereotypes and social stratifications of the main supermarkets have died a death, as it seems has the one-size-fits-all model that has, until recently, done so well for Tesco.

Shoppers are no longer satisfied by one store for their weekly needs – we’re seeing a fragmentation of basket, with many consumers happy to pick and choose between retailers in an effort to find the right product, typically either those of the highest quality or the biggest discount.

Waitrose and Aldi, unlike the big four, help solve the ‘choice paradox’ faced by shoppers – they streamline choices to a limited but carefully selected number of SKUs, making it easier and quicker for shoppers to make decisions. In short, they make our increasingly busy lives more simple.

And if you still don’t believe this is happening, next time you’re at the checkout have a look at how many loyalty-scheme fobs the shopper in front of you has on their keyring – a simple, telltale sign of the times.

In light of this macro-change in behaviour, it’s no surprise that we’re seeing a decline in fortunes for Tesco and growth at both ends of the grocery spectrum.

For today’s shopper, niche is good. We don’t foresee a rose-tinted return to the high street of old, but the genuine clarity of mission displayed by Aldi and Waitrose fits perfectly the current desires and behaviours of shoppers.

For a long time it was Tesco that displayed such clarity with its ‘Every Little Helps’ positioning – few could match its value offering and it led the way with the Clubcard loyalty scheme.

But the competition was quick to replicate that and Tesco has been left in limbo.

Shoppers see Aldi and think ‘cheap’. They see Waitrose and think ‘quality’. What do they think now when they see Tesco?

Brands communicate meaning o it’s no surprise that those retailers that best communicate a single-minded message are outperforming their mixed-message competitors.