By Max Clarke
The increasing income disparities in post-recession Britain have resulted in a similar polarisation in the UK’s supermarkets.
Discount retailers, including ALDI and Lidl have enjoyed a surge in popularity as increasingly squeezed consumers hunt out bargains. As the same time, overtly high-end supermarket chain, Waitrose has also enjoyed a sales boom, the food and drink retail trade publication, The Grocer has revealed.
Waitrose’ year-on-year growth stood at 9%, whilst ALDI and Lida’s share of the market increased from 2.6% to 3.4%.
“The ‘two nations’ effect continues unabated,” said director of Kantar communications, Edward Garner. “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.”
“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.”
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