Lidl now UK’s seventh largest supermarket

The firm is moving up the ranks
The firm is moving up the ranks

Lidl has become the UK’s seventh largest supermarket as shoppers cope with inflation by turning to the discounters, figures show.

The German retailer increased its market share to a record high of 5.2% over the 12 weeks to August 13, according to Kantar Worldpanel, as 10 million households visited its expanding network of stores.

It increased sales by 18.9% overall, with alcohol and fresh produce performing particularly well.

Aldi was not far behind with sales growth of 17.2%, attracting 1.1 million more shoppers than this time last year and increasing market share to 7%.

The discounters’ success coincides with like-for-like grocery inflation increasing slightly to 3.3% after holding steady at 3.2% for the past two months.

At the current rate, price increases could add a further £138 to the average household’s annual grocery bill, with the price of butter and fish most affected, Kantar said.

Overall supermarket sales grew by 4% year on year, although the disappointing summer weather saw sales of ice cream down 9% and burgers slumping by 25% - an £8 million loss year on year.

All four of Britain’s biggest grocers managed a growth in sales for the fifth consecutive period, a run of collective success not seen since 2013.