02 May 2008


Print	Email

I'm going to shop in Lidl…

Fiona Briggs, consultant editor, takes a leaf out of the analysts' books and decides not to discount the discounters

Rising prices at the petrol pumps, rising food bills, rising gas and electricity costs have left me wondering if anything is actually coming down in price these days.

Aha, yes, I almost forgot, house prices. Doh!

As a result, I’m furtively searching for ways in which to make savings.

And, following a raft of recent news stories posted on Talking Retail and a recent visit to Lidl HQ in Wimbledon, I’ve decided that my food bill is the prime place to start.

I’m kicking myself really. After all, in my 7 March 2008 blog I predicted the discounters would take market share in grocery as the credit cinch became a full-blown crunch.

The latest data from leading research companies TNS and Nielsen supports that trend.

Reporting figures for the 12 weeks to 20 April 2008, TNS reveals Aldi’s share is up a staggering 17.4%. Lidl is up by 7.6% and Netto is ahead by 6%.

To put those figures into context, the grocery market as a whole grew by 6% during the period and both Tesco and Sainsbury’s underperformed the market with gains of 5.5% and 4.2% respectively.

“Aldi has been one of the main beneficiaries of the Kwik Save demise but this effect has largely run its course so the current performance is impressive,” reports Ed Garner, director of research at TNS Worldpanel.

Nielsen is of like mind. Its figures for the 12 weeks to 19 April 2008 show the combined sales for discounters are growing ahead of the market at 13% year-on-year and the discounters’ market share on food now stands at 5.5%.

A visit to the Whole Foods Market stand at last week’s Real Food Festival at Earls Court gave me further pause for thought.

Whole Foods Market’s marketing team leader, Ben Woodgate, claimed shoppers at his store were still keen to buy quality products.

However, he conceded there was polarisation in consumer spend.

“They ski in the Three Valleys but buy their clothes from TK Maxx,” he said.

Food, unlike clothing is not a discretionary purchase. However, just as shoppers have moved from Marks & Sparks to Primark, who’s to say they won’t increasingly turn to Aldi instead of Tesco?

Just check out Aldi’s latest TV advertisement, which features our own Quality Food Awards, for further incentives for shoppers to make a switch.

A visit to Lidl has finally persuaded me to give the discounters a whirl.

Like its rivals, it is keen to shout about quality products at low prices.

“If you want to make substantial savings on your weekly shop without compromising on quality, you can do that at Lidl,” Matthew Nobbs, Lidl supply chain director, told me.

“Why trade down on what you like eating. You can still afford it, just change supermarket.”

I will certainly give it a try.

And, in a week when the Competition Commission, effectively opened the door to more discounter competition, so may many more.

Email this to a friend