Aldi dethrones Asda as Britain's third biggest supermarket
Quote from VATcal on 08/04/2024, 18:41German discount giant Aldi has stormed past Asda to become Britain's third-largest supermarket chain, according to recent analysis. This marks a significant blow for Asda, which has been struggling to hold onto market share since its £6.8 billion takeover by the Issa brothers in 2021.
The burden of debt incurred during the takeover is believed to be a contributing factor to Asda's stagnation. Data from NielsenIQ reveals that Asda's growth has stalled, with sales up by a mere 0.8% in the 12 weeks leading up to March 23rd, 2024. This stands in stark contrast to Aldi's performance, which boasts a 12.2% market share compared to Asda's 11.7%. The delay in Asda's annual results publication further amplifies concerns about the grocer's current standing.
This development highlights the growing strength of discount supermarkets in the UK. Aldi and fellow discounter Lidl have been steadily capturing a larger slice of the grocery market for the past two decades. Industry experts like Ronny Gottschlich, former Lidl UK boss, predict that the combined market share of these discount giants could surpass even Tesco, the current market leader, by 2027.
Asda, under the Issa brothers' leadership, has vowed to reclaim its position as the second-largest grocer, pushing Sainsbury's out of the spot. However, with Aldi's recent surge and the current economic climate, this goal might prove increasingly difficult to achieve.
German discount giant Aldi has stormed past Asda to become Britain's third-largest supermarket chain, according to recent analysis. This marks a significant blow for Asda, which has been struggling to hold onto market share since its £6.8 billion takeover by the Issa brothers in 2021.
The burden of debt incurred during the takeover is believed to be a contributing factor to Asda's stagnation. Data from NielsenIQ reveals that Asda's growth has stalled, with sales up by a mere 0.8% in the 12 weeks leading up to March 23rd, 2024. This stands in stark contrast to Aldi's performance, which boasts a 12.2% market share compared to Asda's 11.7%. The delay in Asda's annual results publication further amplifies concerns about the grocer's current standing.
This development highlights the growing strength of discount supermarkets in the UK. Aldi and fellow discounter Lidl have been steadily capturing a larger slice of the grocery market for the past two decades. Industry experts like Ronny Gottschlich, former Lidl UK boss, predict that the combined market share of these discount giants could surpass even Tesco, the current market leader, by 2027.
Asda, under the Issa brothers' leadership, has vowed to reclaim its position as the second-largest grocer, pushing Sainsbury's out of the spot. However, with Aldi's recent surge and the current economic climate, this goal might prove increasingly difficult to achieve.
