Big Four supermarkets losing out to higher and lower end retailers

16 July 2013

Economic Warning Signs Increase

The Big Four supermarkets - that'd be Tesco, Asda, Morrison's and Sainsbury's - are all losing ground as people gravitate toward the top and bottom end of the shopping spectrum.

Aldi, Lidl and Waitrose are basically taking more business away from the Big Four, with Aldi scoring an all-time record share of the market, according to researcher Kantar Worldpanel. Tesco, Asda and Wm Morrison all saw their share dipping.

"The continuing polarisation of the grocery market poses a difficult question for the big four retailers - how to make their offer appealing in an increasingly squeezed market," said Kantar analyst Fraser McKevitt.

"Asda recently announced it is going toe-to-toe with Aldi on the price of fresh food and produce, demonstrating its growing concern with the threat from the discounter."

It seems, when the recession hits, people are either looking for bargains or showing off how much money they have. The middle ground has to work out whether it wants to go cheap, or go exclusive.

7 comments

  • Zeddy
    Asda et al have nobody to blame but themselves. Take your customers for granted and they will leave you. lidl and Aldi can look low rent but their products are generally good.
  • haggis
    My weekly spend at aldi is £25-30. Used to be £50+ at Tesco or Morrisons. For me all Aldi's brands taste as good or better than Kellogs, Heinz etc.
  • Spencer
    @ Haggis you'd be surprised how many 'Aldi' brands actually ARE Kellogs/Heinz etc... Product splintering I believe it's called.
  • So T.
    @Fencer Both the brands you mention claim not to produce for other companies, so someone is talking bollocks.
  • duck
    I used to work in a factory supplying all supermarkets and caterers, we used the same products for everyone. Aldi and Lidl always supplied us with foreign or random sounding branded labels.
  • Kevin
    'Aldi, rival discounter Lidl and Waitrose now have a combined 11.5 percent of the U.K. ' Anyone got an individual breakdown? Comparing the combined % of 3 companies isn't a fair comparison of the 16.5% that Sainsbury's has. Kelloggs/Heinz say they don't make for anyone else but virtually everything else you get is made by the same companies.
  • TeddyEdward
    The big four have piddly reductions on fruit and veg. Aldi and Lidl offer big reductions.

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