Groceries '£400 cheaper thanks to Aldi and Lidl'
Shoppers save hundreds of pounds every year thanks to competition from the discount supermarkets, research claims.
The rapid rise of the discount supermarkets is saving you a small fortune on your grocery bills.
Even if you don’t actually shop with Aldi and Lidl, the intense price war they triggered among the established supermarket giants has seen the average price of goods slashed by £400 a year.
That’s according to new research from market analysts Kantar Worldpanel, which shows household grocery bills have been falling for well over 18 months. Head of retail and consumer insight at Kantar, Fraser McKevitt says: “Consumers are enjoying a golden period of cheaper groceries, with like-for-like prices falling every month since September 2014.”
Earn cashback on your grocery shop and more: compare rewards credit cards
Are promotions a thing of the past?
Crucially, cheaper shopping bills are not the result of confusing promotions, McKevitt said, but rather supermarkets simplifying their prices.
That trend has also been noted by market analysts at Nielsen, who claim supermarket promotions are at their lowest level for over seven years.
Mike Watkins, Nielsen's UK head of retailer and business insight, explains: "Over the last two years, around 34% of a typical supermarket shopping bill went on promotional items."
To ensure they didn't lose more customers to discounters, supermarkets have turned temporary price reductions into "permanent cuts", he adds. As a result, promotional activity has been reduced as many items are now cheaper all-year round.
Earn cashback on your grocery shop and more: compare rewards credit cards
Aldi and Lidl increase their shares
And it’s no wonder the big supermarkets are worried. Nielsen says nearly half of all households now shop at a discounter every month, up from 40% two years ago.
Aldi and Lidl's share of the grocery market increased to 11.5% in the twelve weeks ending 25 April 2016, compared to 10.1% a year ago.
Watkins said: "Only M&S, Waitrose and the Co-op seem able to fight off the rise of the discounters and attract more shoppers", as we enter the second half of 2016 it will become "even harder" as Aldi and Lidl open more stores.
Read more on loveMONEY:
Sainsbury’s scraps multibuy offers
Most Recent
Comments
-
Sorry can't agree. Our local Tesco meat was packed in eastern Europe and even the chicken had travelled half way across the country to get to the store where as our Lidl uses a local farmer for it's beef and chicken. Unfortunately Tesco is about maximising profit with zero consideration for the customer, that why they are more expensive and this goes right down to the quality of their trollies and smaller parking spaces which can add another £700 to your annual Tesco shop, in repair bills.
REPORT This comment has been reported. -
My cheapest supoermarket is Sainsburys because I can walk there so don't have the expense of using the car. If you pay less, either you get what you pay for or someone somewhere is paying for your cheap food/goods. You can be sure it isn't Aldi or Lidl or anyone else, so it'll be the farmer. Whilst you are congratulating yourselves on your cheap food, think on this. As the farming community commits suicide or sells up, the "farmers" will become larger and larger. Until one day they will be telling us how much we are going to be paying, not the other way round. And that is going to be painful!
REPORT This comment has been reported. -
You're dead right tyke120 - but I'm afraid a number of deluded people don't see it, as it's all about the moment for them. If you bear in mind these so called 'cut price' supermarkets (the clue is in the name) do not operate to the same standard as our proper supermarkets. For example, they have a completely different idea when it comes to sell by dates! Also, try returning faulty items to them - customer service is virtually non-existent! There is no way you can compare their product range to our British, established supermarket chains. Be patriotic and shop British!
REPORT This comment has been reported.
Do you want to comment on this article? You need to be signed in for this feature
12 May 2016