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Aldi and Lidl end year as fastest growing supermarkets

Aldi and Lidl end year as fastest growing supermarkets

Alcohol sales grew by 5.1% year on year, with spirits leading the charge: "up 7.6% as consumers favoured festive tipples featuring gin and whisky", McKevitt said.

Both retailers managed to grow their sales by an impressive 16.8 per cent compared to the same period last year, taking Aldi's share of the entire United Kingdom grocery market to 6.8 per cent from 6 per cent a year earlier, and Lidl's to 5 per cent from 4.4 per cent in December 2016.

Indeed, private-label sales at the supermarkets grew at almost three times the rate of the overall grocery market (6 per cent) as "most retailers made a big play on the quality and value of premium private-label this Christmas, which is crucial as shoppers look to economise not compromise".

Among the four largest supermarkets, Tesco showed the most improved performance over the final 12 weeks of the year, reporting a 3.4 per cent annual sales jump, followed by Asda, with a 2.1 per cent increase.

The research found that among the retailers, Aldi and Lidl are level pegging in the battle to be the nation's fastest growing supermarket, both growing sales by 16.8% year-on-year.

Asda grew sales by 2.2 per cent, Morrisons recorded 2.1 per cent of growth while Sainsbury's was up two per cent.

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Aldi's share of the entire United Kingdom grocery market rose from 6% to 6.8% and Lidl's from 4.4% to 5%. Shoppers parted with £747 million on 22 December alone, making the Friday before Christmas the busiest shopping day ever recorded.

"Shoppers are splashing out despite fewer promotions to tempt them. Consumers are still facing more expensive groceries: like for like prices rose by 3.7% in the 12 weeks to 31 December, a slight increase on the 3.6% rise reported last month".

Shares in Sainsbury's were up 1 percent, while Tesco was down 1.7 percent, having risen 12 percent over the last three months.

Kantar said that, across the grocery retailers, households spent an average £1,054 over the period. Aldi increased market share by 0.8 percentage points year on year to capture 6.8% of the market, with 39% of trips including at least one product from its premium Specially Selected range.

"Those who could offer and deliver on last minute delivery options did better, boosting online non-food sales more than 15% in the seven days before Christmas, a week when, until now, shoppers would have had to turn to stores to ensure gifts made it under the tree in time", Dickinson said.

Whilst this had helped boost overall sales, the BRC said it hit many retailers' profits for the period.


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