Shoppers turn to discount groceries as inflation soars

Discount grocery chains are enjoying a bounce back as hard-up shoppers tighten their belts in the face of soaring inflation, tax hikes and spending cuts, figures revealed today.

The latest data from Kantar Worldpanel showed discounters Aldi and Lidl secured a bigger slice of the supermarket sector in the 12 weeks to January 23, each posting near 10% sales growth amid a consumer drive to save cash.

Aldi increased its market share to 3.1% from 2.9%, while rival Lidl rose from 2.2% to 2.4%.

Today's figures also showed Sainsbury's heaping further pressure on its larger rivals as it remained the only "big four" player to increase its share.

Sainsbury's - the stand out winner over Christmas - saw its share rise from 16.3% to 16.6%, creeping ever closer to toppling Asda from second place.

Asda held its share firm at 16.9% following its move to up the ante with an improved price guarantee to be 10% cheaper than its competitors.

Market leader Tesco also maintained its share, at 30.5%, although Morrisons continued to lose out with a drop to 12.4% from 12.5%.

Edward Garner, communications director at Kantar Worldpanel, said the performance among discounters was impressive at a quiet time of year for the sector.

"Although January is not traditionally a strong
period for the discounters, both Aldi and Lidl have posted near 10% growth and lifted the total discounters' market share from 5.9% last year to 6.1% in the latest period," he said.