New consumer research provides further evidence that the discounters are benefitting the most from the cost-of-living crisis.
In a recent survey, GlobalData asked UK shoppers how they would react to rising food and grocery prices. 14% stated that they would switch to a cheaper retailer, and of those, 37% said they would switch to Aldi, the equivalent of over three million consumers.
Lidl is also benefitting, whilst the likes of Sainsbury’s, Asda and Morrisons are witnessing shopper desertion.
Amira Freyer-Elgendy, Food & Grocery Analyst at GlobalData, commented: “Aldi will gain share in 2022 due to improved loyalty and bigger baskets from existing customers and the acquisition of 3.1 million shoppers switching from rivals. This figure doesn’t even account for the new customers it will gain from the 16 new stores it plans to open by the end of the year.”
She added: “Morrisons’ latest announcement that it will slash prices on 150 items will go some way in protecting shopper loyalty, particularly as most consumers prefer to trade down within their usual supermarket rather than switch; however, its reaction to the crisis has been slower than its rivals. As a result, Morrisons will feel the squeeze from Aldi even more so as we move through H2 as more consumers search for value in response to tighter household budgets.”
NAM Implications:
- Aldi & Lidl gaining customers at the expense of the mults…
- Wow!
- Rivals (and suppliers) should keep in mind that discounter shoppers rarely revert to traditional retailers…
- …when economies (if ever) return to normal.
- (not Doom & Gloom, reality…)
