(Bloomberg) -- Lidl’s UK grocery sales jumped by more than 9% compared with a year earlier, as German discount stores remained popular with British shoppers seeking out savings on their weekly shops.
Data from research firm Kantar, published Tuesday, showed Lidl with the second-highest sales growth in the 12 weeks to Sept. 1 behind online grocer Ocado.
Asda’s grocery sales in the same period fell 5.6% year-on-year, the sharpest drop of any UK supermarket. It has come under pressure from rival grocers, as has Morrisons, which remains only half a percentage point above Lidl in terms of market share.
Lidl’s fellow German discount grocer Aldi saw sales grow 1.3% last month. It said Monday that it plans to invest £800 million ($1 billion) in its British expansion after profits in the country more than tripled in 2023.
While shoppers are still on the hunt for competitive pricing, Aldi’s UK and Ireland Chief Executive Officer Giles Hurley also said more customers are trading up to its premium offering as inflationary pressures ease.
Meanwhile, the UK’s biggest supermarket Tesco increased its market share to 27.8%, Kantar said, its highest share in more than two and a half years.
Inflation
UK grocery inflation eased lower to 1.7% in the period, though Kantar said the majority of households are still worried about the cost of essentials. Retailers’ promotions increased year-on-year for the 16th month in a row.
Signs of easing grocery inflation, alongside figures showing another step down in wage pressures, keep the Bank of England on course to cut interest rates again this year.
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