Lidl wins record market share as supermarket prices surge
The German discounter reached a record market share of 8.3pc in the four weeks to July 13, gaining 0.5 percentage points as an extra 500,000 customers flocked to its stores. It is the highest share for Lidl since arriving in the UK in 1994.
It came amid a fresh acceleration in grocery price inflation as prices rose 5.2pc, the highest level in 18 months, according to new data from Worldpanel.
That mirrors broader inflation figures showed that UK prices in June rose by more than expected to the highest since January 2024.
This latest increase will pile further pressure on shoppers' budgets and could lead to a £275 annual rise in grocery bills, Worldpanel said.
Fraser McKevitt, of Worldpanel, said: 'Just under two thirds of households say they are very concerned about the cost of their grocery shopping, and people are adapting their habits to avoid the full impact of price rises.'
In addition to seeking out discount stores like Lidl, the data showed shoppers are turning to cheaper own-label products. Sales of these ranges outpaced brands, growing by 5.6pc compared to 4.9pc.
Mr McKevitt added: 'Innovation is absolutely vital to help grocers keep up with new trends and make sure they're meeting shoppers' needs as behaviours and priorities shift.'
Retailers have blamed recent price rises on the Government after Rachel Reeves hit companies with higher National Insurance contributions while also raising the minimum wage.
Tim Steiner, the chief executive of Ocado, last week said it would be 'unrealistic' not to expect higher costs from the Budget leading to food price rises.
Supermarkets benefited from the recent heatwave, with sales of iced coffee surging by more than 80pc. Sales of summer favourites like ice cream and sorbet also jumped by a third.
Despite the strain on budgets, the figures showed shoppers were in a celebratory mood over the last month, spending 9pc more on champagne and sparkling wines compared to last year. Wimbledon also provided a boost to strawberries and cream, with sales up 28pc and 16pc respectively.
Ocado was the fastest growing British grocer, with sales rising 11.7pc, as the popularity of online shopping shows no sign of waning.
Tesco cemented its status as the largest supermarket chain, boosting its share to 28.3pc as sales grew at their fastest pace since December 2023.
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