Budget supermarkets focus on London, as competitors' sales growth stalls

Charlie Spargo's picture

Aldi and Lidl will boost their presence in London, targeting the city as national supermarket sales growth begins to slow.

The two German companies have set their sights on London after a period of trading that bucked the overall trend of the other big-name supermarkets. In the 12 weeks until June 16th, Aldi's sales were up 9.3%, while Lidl's were up 7.5%. London's grocery sales growth has also been much stronger than the rest of the UK, sitting at 4% YoY.

On the other hand, overall supermarket sector sales were up 1.4% YoY, which is a third year of growth - but a "modest" figure according to data collectors, Kantar. The conditions for struggling growth have been created by a rainy early summer, and comparisons with a summer 2018 that included the FIFA World Cup, which saw a surge in shoppers and revellers.

Aldi has chosen to open a fleet of new 'Local' shops in London as part of its growth strategy, while Lidl will open a large-scale flagship location on Tottenham Court Road.

While Aldi and Lidl have been operating successfully, they have in fact been outperformed by Ocado, whose sales were up 11.3%. Iceland managed to boost sales by 0.6%.

On the other hand, Tesco and Waitrose experienced flat growth in sales, Asda's sales dropped by 0.1%, Morrison's by 0.5%, and Sainsbury's by 0.6%.