Aldi and Lidl have collectively gained around 800,000 customers this year, as consumers continue to flock to cheaper alternatives despite subsiding inflation.
The German discounters saw sales increase by 22.2% and 16.5% respectively over the 12 weeks to mid-August and were joined only by Marks and Spencer Group PLC (LSE:MKS) and Tesco PLC (LSE:TSCO) in gaining market share, market researcher NIQ reported on Tuesday.
Sales across UK supermarkets rose by 7.2% during August meanwhile, slipping from July’s 8.9% growth as volumes actually marked a decline.
This was likely due to less severe inflation in August, after July saw a 6.4% rise in the consumer price index compared to 7.3% in June, NIQ explained, with poor weather and low confidence also playing a part.
“Despite lower inflation, most consumers remain pessimistic about their financial situation in the coming three months,” NIQ retail insight head Mike Watkins said.
Some 60% of people in the UK anticipate that they will be impacted by rising living costs, he continued.
Overall, August’s sales figures were the lowest since January, with shoppers’ visits to stores marking a 0.5% decline compared to a year earlier.
“With the added concerns of increasing mortgage and rental expenses for many households, it appears that a shift in sentiment may be some time off,” Watkins added.
J Sainsbury PLC (LSE:SBRY) and Tesco shares slipped 1% and 0.8% respectively following the news.