Hard discounters’ growth forecast to continue

Published 18 January 16

The hard discounters (Aldi and Lidl) recently reached a combined 10% total market share, growing  value sales by 15.4% (Aldi) and 17.9%  (Lidl) respectively year-on-year (Kantar Worldpanel, 12 w/e 6 Dec 15).

The market’s competitive response is contributing to falling prices across staples (including dairy) as other retailers attempt to attract shoppers back into their stores.

The Institute of Grocery Distribution (IGD) predicts that the discount channel as a whole will deliver the largest cash gain of any UK channel over the next five years, growing by an additional £10.5bn.

It is therefore likely that pressure from discounters will continue, and four in ten shoppers expect prices to remain the same over the next 12 months (IGD ShoppperVista, November 2015).