The discounters and Waitrose have made further gains on rivals over the past three months, as the UK’s economic woes continue to polarise shopping habits.

Aldi and Lidl both held on to their record share of the market, according to new data from Kantar Worldpanel. The German discounters swallowed 3.4% and 2.6% of the market respectively in the 12 weeks to 12 June.

Waitrose, meanwhile, upped its share from 4.2% for the equivalent period last year to 4.3%, with year-on-year growth of almost 9%.

“The ‘two nations’ effect continues unabated,” said Kantar communications director Edward Garner, pointing to the growth at each end of the market. “Further evidence for trend is demonstrated by double-digit growth of Tesco’s Finest range.”

He added: “The discounters are attracting some new customers but most of their growth is coming from gaining a greater share of the household shopping list. Customers are making a main shopping trip to their favourite store and this is then ‘topped up’ with selective shopping at the discounter.”

Asda was one victim of the discounters’ growth. It lost market share from 16.7% this time last year to 16.3% for the current period.

As expected, growth across the market as a whole slowed dramatically after the Easter bank holiday boost and the Royal Wedding. Sales were up 4.7% for the three-month period but up just 2.5% in the past four weeks.

“Many shoppers are adopting coping strategies such as taking advantage of promotional offers or ‘topping up’ at the discounters,” added Garner. “However, there is no sign of a return to the rapid growth of budget own-label ranges that we saw in 2008.”

Grocery inflation stood at 4.6% for the 12-week period, according to Kantar data.

Read more
Bank holiday bounce gives grocery trade an April to celebrate (24 May 2011)
What’s behind the amazing resurgence of discounters? (14 May 2011)

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