Discounters continue to disrupt the supermarket status quo…
What does that mean for an FMCG brand like yours?
Aldi vs Morrisons
You’ve probably heard that there’s been a major shake-up in the supermarket industry.
In September, data agency Kantar found that Aldi had overtaken Morrisons as the fourth biggest supermarket in the UK for the first time.
After 18 years of Morrisons being in the “Big Four,” this shift highlights a major change in consumer attitudes.
At the same time, another discount grocery retailer experienced major growth: Lidl’s sales rose by 20.9% while its market share reached 7.1%.
It’s no surprise that discount retailers like Aldi and Lidl are gaining in popularity.
So far in 2022, food costs have risen 14.6%…
Back in January, Morrisons chairman Sir Terry Leahy said: “We’re probably past the peak of the disruptive effect of discounters. Supermarkets have learned how to compete with them.”
That comment hasn’t aged all that well…
Amidst the cost-of-living crisis, shoppers are looking for cheaper grocery alternatives – and home brand lines at low prices are the easiest way to do that.
How are supermarkets competing for market share?
In response to the shift in dynamics, Morrisons’ strategic response is to invest more than £100m to cut the costs of around 150 of its most popular products.
Other supermarkets, including Tesco and Sainsbury’s, have introduced “Aldi Price Match” own brand products, to attract discount shoppers – and avoid losing existing loyal customers.
Meanwhile, Aldi has pledged to do “whatever it takes” to keep prices low – despite a steep drop in profits. But, while the retailer’s profits dipped by 86% between 2020 and 2021, it has also seen a huge uplift in shoppers.
In the 12 weeks to September 2022, 1.5 million extra shoppers visited their stores…
With 90% of Aldi’s sales relying on own label products, that increase in customers offers FMCG brands an opportunity to innovate.
Keeping up with the times
In reaction to these new trends, we have seen a rise in requests for Sales and National Account Management talent with specialised convenience and discount experience.
Contact us today for specialist Sales and NAM talent…
Call us: 0333 772 7200