Supermarkets continuing to feel ‘squeezed middle’

Aldi grew its sales by a record 31.1 per cent in the 12 weeks to 14 April. Picture: Getty

Aldi grew its sales by a record 31.1 per cent in the 12 weeks to 14 April to take its market share to an all-time high of 3.4 per cent, while German peer Lidl took a record 3 per cent share, according to market analysts at Kantar Worldpanel.

Waitrose, the high-end grocer owned by department store operator John Lewis, also bagged a record market share of 4.9 per cent.

Sainsbury’s was the only one of the “big four” chains to grow its slice of the sector, with Asda, Morrisons and Tesco all losing ground. The “squeezed middle” term was coined to describe retailers caught between discount and premium outlets.

Edward Garner, director at Kantar Worldpanel, said: “Pressure on household budgets is undoubtedly driving some of the growth at the discounters, but messages about quality are starting to resonate.”

Garner pointed to Lidl unveiling plans to increase its fresh meat and poultry floorspace by 50 per cent within the year and Aldi’s opening of its first city-centre “convenience” store at Kilburn, in London.

News of the latest figures came as Asda unveiled plans to open a further 12 stores this year and create 2,500 jobs as part of a £700 million investment that will include what the company claimed is “the world’s first ‘same day’ delivery service on grocery orders” placed online.

A spokesman for the chain said that it had already opened a branch in Larkhall and that it would open a store in Fraserburgh and a further outlet Dundee later this year.