Lidl snaps up market share as rival Aldi stalls

Lidl is experiencing rapid growth as a discount supermarket in the UK, according to recent figures from Worldpanel. The German discount retailer now holds 8.6 percent of the UK grocery market, up from 8.2 percent a year ago, making it the only UK supermarket actively increasing its market share. Lidl's sales have grown by 7.1 percent compared to the same period last year, with increased sales in categories such as fruit, vegetables, and wine.

The supermarket saw half a million more visits than the previous year. Worldpanel's Fraser McKevitt noted that Lidl is growing ahead of the market in 28 out of the 38 grocery sectors it measures, performing particularly well in fresh produce, alcohol, prepared foods, soft drinks, and dairy. Lidl's loyalty program, Lidl Plus, has contributed to its growing popularity among British households, with 54 percent of households shopping at the store in the past 12 weeks.

Lidl's loyalty program has seen a 23 percent increase in app users over the past year, which McKevitt said is resonating with shoppers looking for discounts. In contrast, Aldi, Lidl's main rival, saw its market share drop from 10.6 to 10.5 percent over the past year. Aldi's CEO, Giles Hurley, criticized competitors for allegedly misleading shoppers with loyalty discounts, stating that Aldi is focused on growing volumes rather than headline sales.

Tesco and Sainsbury's also experienced declines in market share, falling from 27.9 to 27.8 percent and 15.3 to 15.2 percent, respectively. Asda, the UK's biggest supermarket, saw the largest decrease, dropping from 11.8 to 11.5 percent. Asda's former CEO, Allan Leighton, returned to the budget supermarket in 2024 to lead a turnaround, with the company aiming to reduce its billion-pound debt pile.