Aldi and Lidl ‘will have fifth of produce market by 2020’

Aldi and Lidl could account for 20 per cent of fresh produce retail sales by 2020, Kantar Wordpanel has predicted.

At present, Aldi occupies 6.2 per cent of the grocery market, with Lidl slightly behind on 4.6 per cent. But according to growth predictions based on the discounters’ commitment to store openings and how they have been growing their various shopper metrics, the two retailers could see their combined grocery market share increase by 40 per cent in the next four years – from 10.8 per cent to 14.3 per cent.

If the discounters’ fresh produce sales rose in line with this anticipated growth, the pair would account for £1 in £5 spent in the produce market.

Two of the main drivers behind this expansion, according to Cowan, have been store openings and effective marketing of the retailers’ premium ranges – Specially Selected at Aldi and Deluxe at Lidl.

“One of the things people love to say is that the recession caused [the rise of] the discounters,” said Kantar’s Chris Cowan. “Well that’s nonsense. It’s because they’re opening stores, it’s because they’re doing a great job with their premium marketing.”

“It’s not just about having a cheap offering,” he added. “Aldi and Lidl are both really pushing their premium ranges. Aldi are incredibly reliant upon their premium tier and Lidl are getting that way too.”

Kantar also asked consumers why they shop at Aldi and Lidl and while “good prices” (60 per cent) were the most important reason that consumers on Kantar’s panel chose Aldi or Lidl, other factors such as the retailers’ good quality products, fresh food and easy-to-find products also played an important role.

“Cheap prices come up but the other things that are really important are around quality and the offering in fresh food,” explained Cowan. “Those are the things they are doing really well with and over-index on.”