Budget supermarket Aldi becomes Britain’s fifth largest grocer after overtaking Co-op

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Aldi has become Britain’s fifth largest grocer

Aldi's sales rose 12.4 per cent year-on-year in the 12 weeks to January 29, taking its market share to 6.2 per cent, ahead of the Co-op's 6 per cent, data from Kantar Worldpanel shows.

The past quarter saw Aldi attract 826,000 more shoppers than during the same period last year, underpinned by an extensive programme of store openings.

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Supermarket sales overall were up 1.7 per cent on last year, with eight of the nine major retailers seeing growth over the quarter.

Kantar said supply issues affecting fresh produce over the last few weeks had affected sales.

Morrisons was the fastest-growing retailer within the big four, increasing its market share for the first time since June 2015 with a sales increase of 1.9 per cent year on year, helped mainly by customer demand for its premium own label range.

Just a decade ago Aldi was the UK's tenth largest food retailer

Fraser McKevitt, Kantar Worldpanel

Tesco grew for the fifth period in a row – albeit at a slower rate than previously – with sales up 0.3 per cent, resulting in a market share drop to 28.1 per cent.

Sainsbury's sales remained flat, while Asda suffered a 1.9 per cent fall but managed to increase the number of shoppers visiting its stores compared to the same period last year.

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The position was achieved after the discounter overtook Co-op

Elsewhere, Waitrose, Lidl and Iceland all continued to increase sales by 3.4 per cent, 9.4 per cent and 8.6 per cent respectively.

Meanwhile, rising prices – which consumers saw at Christmas for the first time since 2014 – have continued into 2017, with like-for-like inflation on a basket of everyday groceries climbing to 0.7 per cent.

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Aldi's sales rose 12.4 per cent year-on-year in the 12 weeks to January

Kantar said the increase would mean shoppers would find themselves around £27 worse off if prices continue to rise at the same rate for the rest of 2017.

Fraser McKevitt, the head of retail and consumer insight at Kantar Worldpanel, said: “Just a decade ago Aldi was the UK's tenth largest food retailer, accounting for less than 2 per cent of the grocery market.

“Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2 per cent market share.“

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Supermarket sales overall were up 1.7 per cent on last year

Aldi UK and Ireland chief executive Matthew Barnes said: “Aldi customers get products of comparable quality to the leading brands at prices that are significantly cheaper than any of our competitors.

“This unique offering is resonating with British shoppers and we are opening 70 new stores this year to help keep up with customer demand.”

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