Discounters are benefitting the most from the cost-of-living crisis with their low cost and quality credentials are appealing to consumers who are looking for cheaper options to help cope with inflation, says GlobalData, stating that "3.1 million shoppers" are poised to switch to Aldi.
According to the data and analytics company, Aldi’s UK grocery market share is forecast to grow 0.3ppts to 7.1 per cent in 2022 meaning the discounter will take Morrisons’ spot in the Big Four as its share is set to fall 0.9ppts to 7.0 per cent. The survey was conducted on 2,000 nationally representative UK consumers, aged 16+ conducted in August 2022.
GlobalData forecasts that there will be a 11.7 per cent price inflation in the grocery market this year. On being asked how they would react to grocery price rise, 14 of respondents said they would switch to a cheaper retailer, and of those, 37 per cent said they would switch to Aldi, the equivalent of over three million consumers.
Amira Freyer-Elgendy, Food & Grocery Analyst at GlobalData, comments: “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.”
Since discounters such as Aldi and Lidl are attracting 70 per cent of all switchers, the likes of Sainsbury’s, Asda and Morrisons are witnessing shopper desertion.
“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,” Freyer-Elgendy added.
“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.”
