Wednesday, 31 May 2017

Aldi and Lidl sales surge as food inflation accelerates

Discount supermarkets Aldi and Lidl are growing sales at the fastest pace for more than two years as inflation pushes up the average price of food shopping by £119 a year.
Industry figures from Kantar Worldpanel showed grocery inflation rose to 2.9% in the 12 weeks to 21 May, its highest level since December 2013 and up from 2.6% in the 12 weeks to April.

With consumers experiencing a squeeze, Aldi and Lidl posted their strongest combined growth since January 2015, further eating into the market share of the big four supermarkets.

The latest Kantar data showed all the big grocery chains saw sales growth, boosted by higher prices.

German-owned Aldi and Lidl were the strongest, growing sales by 19.8% and 18.3% as their combined share of the market rose to 12%.

Figures showed 62% of the UK population shopped in one of the cut-price chains in the 12-week period, up from 58% last year - representing an additional 1.1 million households visiting the stores.

The upturn in grocery inflation marks a rapid acceleration after more than two years of prices falling amid fierce competition, before they started to creep up again in January.
Consumer prices are being driven higher partly thanks to the collapse in the pound since last year's Brexit vote, which makes imported goods more expensive.

SKY     News.