UK consumers are still on the lookout for the best deal, which has helped discount stores Aldi and Lidl see dramatic growth in revenues over the past quarter, recording a 26.1% and 11.5% increase respectively, according to new figures from research firm Kantar Worldpanel.
Overall, growth in the UK grocery market has dropped from 4.2% to 2.1% over the past three months, suggesting that consumers are cutting down on spending for essentials, Retail Gazette website reports. Grocery price inflation came in at 3.8% at the end of the three-month period, the study found.
Commenting on the figures, Edward Garner, director at Kantar, says that the findings reflect consumers’ behaviour amid austerity measures, which make more people flock to discount stores in a bid to stretch their limited budgets. Upmarket retailers on the other hand seem to be struggling, with Waitrose seeing a 2.7% drop in revenues compared to the previous quarter. Most premium retailers have witnessed the same trend, the study shows.
Meanwhile, Tesco still holds the biggest share of the UK grocery market, despite a year-to-year drop from 31.1% to 30.7%. Its relaunched Everyday Value range performed particularly well, registering 13% growth, the study reveals.