Discounters squeeze leading supermarkets

A new market report shows that discounters and even traditional markets and local shops are continuing to take market share away from the four big UK supermarkets.

Business intelligence research consultancy Future Thinking, revealed the results of its “2015 Shopper Barometer” which it said showed that 63% of consumers were now using discounters, up 5% from the 58% in 2014.

Future Thinking explained: “The survey of 1,200 UK consumers revealed that the discount supermarkets are continuing to grow in popularity with Britons and will continue to take custom away from the big stores.”

One third of consumers apparently do their main weekly shop at Tesco but two thirds will have shopped at discounters such as Aldi and Lidl for at least some items. Aldi recently overtook Waitrose to become the UK’s sixth biggest supermarket chain with a 5.35% share of the market.

Interestingly, independent shops appear to be seeing more frequent visits from consumers. According to Future Thinking 38% of shoppers have used a street market in the past year, 35% have visted farmers’ markets, 37% have been to a greengrocer and half have been to a butcher.

Noreen Kinsey, head of Shopper Insight, said: “With competition between the supermarkets rife, they must be especially careful to keep listening to what their customers want, rather than what their competitors are doing. The discounters have shown a better understanding of what consumers need, and where and why they are still looking to make savings on their groceries.

“Britons have been living with tightened belts since 2007 and even with economic growth being reported, consumers are reluctant to open their purses and wallets to start spending more. We seem to be better at finding the right deals for the best quality products that we can, and these are seemingly being delivered by the discounters.”

Although wine, beer and spirits was not explicitly singled out by Future Thinking, Kinsey’s comment that the big grocers need to “keep listening” to consumers has been borne out by recent news such as Asda announcing a “makeover” of its wine offering to offer “more choice and inspiration”