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5. Challenging times... for some

Within a virtually static grocery market, competition remains tough but Aldi and Lidl continue to make headway at the expense of their larger rivals.

The latest quarterly report from Kantar Worldpanel showed that the GB grocery retail market grew by just 0.9% in the latest quarter. Sainsbury’s and the Co-op were the pick of the major retailers, both at least matching growth figures in the overall market. Both Aldi and Lidl continued their impressive performance growing by 17.3% and 16.0% respectively and Waitrose’s turnover was still significantly ahead of the market (+2.9%).

Aldi and Lidl continue to impress.

Some recent news from the major players:

  • According to a report in The Grocer, Aldi’s profits fell in the latest period, but this followed major investments in expanding its store portfolio and the company will trial an online service in 2016…as Amazon Fresh plans an entry into the GB online grocery sector
  • The Co-op is heading 'Back to the Future' with a renewed focus on its position as a ‘convenience’ retailer
  • The only way is up, according to a statement from Asda CEO, Andy Clarke
  • Lidl has announced a new sponsorship deal with ‘parenting’ website, Mumsnet
  • Following a decision to dispose of the remainder of its M Local outlets and close a further 11 supermarkets, Morrisons CEO, David Potts, announced a 'six-point turnaround plan' to restore its market position and reaffirmed his commitment to developing the company’s food manufacturing sites
  • Despite the difficult trading environment, Sainsbury’s recently upgraded its profit forecast and was described by analysts as the ‘the best of a bad bunch’
  • Tesco said that 'Project Reset', a major rationalisation of its product ranges, was well ‘on-track’


 Aldi moving online next year.  Amazon trial of online grocery service in Birmingham area.  Co-op heading ‘back to the future’.
 Lidl to sponsor Mumsnet.  Morrisons to dispose of M Local stores.