Britain's supermarkets have offered festive shoppers a sleigh full of savings this Christmas, as discounters Aldi and Lidl raked in a record-breaking share of the grocery market.
According to figures from Worldpanel by Numerator, these two German-owned chains took a whopping 16.8% slice of the market between December 1st and 28th, outpacing their closest competitors Asda and the Co-op. The total spent on groceries during this period reached £13.8 billion, up 3.8% year-over-year, with each shopper parting with an average of £476.
The most in-demand items were fresh meat (£115 million) and chilled snacks such as finger food, dips, and antipasti (£80 million). Meanwhile, Lidl outpaced the other chains to become the fastest-growing physical chain, thanks largely to Asda and Co-op losing sales and market share. This rapid growth now puts Lidl just shy of Morrisons, poised to overtake it to claim fifth place among UK supermarkets.
In contrast, Aldi – currently the UK's fourth-largest chain – is closing in on Asda, which saw its market share decline by 4.2%. The gap between the two chains stands at a mere 1.3 percentage points.
On the other end of the spectrum, upmarket Waitrose posted a remarkable 4.5% increase in sales, while Ocado experienced a 15% surge in online grocery sales – partly driven by households opting for their festive shopping online. The total share of online grocery sales now sits at 12.2%, making it clear that many shoppers have the budget to splurge.
However, this Christmas saw consumers seeking more affordable options, with spending on groceries rising at a slower pace than inflation (4.3% vs. 4.7%). As a result, supermarkets are seeing shoppers flocking to supermarket own-label products, discount chains, and buying fewer items – ultimately making smart savings the name of the game this holiday season.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, attributes the shift towards price-driven purchasing decisions: "It was a Christmas of smart savings and considered choices – almost every household bought into supermarkets' premium ranges, while price remained front of mind."
According to figures from Worldpanel by Numerator, these two German-owned chains took a whopping 16.8% slice of the market between December 1st and 28th, outpacing their closest competitors Asda and the Co-op. The total spent on groceries during this period reached £13.8 billion, up 3.8% year-over-year, with each shopper parting with an average of £476.
The most in-demand items were fresh meat (£115 million) and chilled snacks such as finger food, dips, and antipasti (£80 million). Meanwhile, Lidl outpaced the other chains to become the fastest-growing physical chain, thanks largely to Asda and Co-op losing sales and market share. This rapid growth now puts Lidl just shy of Morrisons, poised to overtake it to claim fifth place among UK supermarkets.
In contrast, Aldi – currently the UK's fourth-largest chain – is closing in on Asda, which saw its market share decline by 4.2%. The gap between the two chains stands at a mere 1.3 percentage points.
On the other end of the spectrum, upmarket Waitrose posted a remarkable 4.5% increase in sales, while Ocado experienced a 15% surge in online grocery sales – partly driven by households opting for their festive shopping online. The total share of online grocery sales now sits at 12.2%, making it clear that many shoppers have the budget to splurge.
However, this Christmas saw consumers seeking more affordable options, with spending on groceries rising at a slower pace than inflation (4.3% vs. 4.7%). As a result, supermarkets are seeing shoppers flocking to supermarket own-label products, discount chains, and buying fewer items – ultimately making smart savings the name of the game this holiday season.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, attributes the shift towards price-driven purchasing decisions: "It was a Christmas of smart savings and considered choices – almost every household bought into supermarkets' premium ranges, while price remained front of mind."