Savvy shoppers who are seeking to make savings on their groceries are turning their backs on premium priced supermarkets in favour of Lidl GB, new insights have revealed.
Across the past 12 months, Lidl has seen a total of £120m coming from households choosing to shop at the discounter instead of the premium priced supermarkets. In January alone, households switched nearly £11m from M&S, Waitrose and Sainsbury’s, an increase of over £10m year on year.
Contributing to the YoY increase is Lidl’s fruit and veg range, with the latter reaching a market share high of 10.2%, as shoppers increasingly turn to the discounter for its high-quality fresh produce. Customers are also being enticed to the discounter by its fresh meat and poultry, which also reach a new record market share, as Lidl continues to overtrade across the category.
Ryan McDonnell, CEO at Lidl GB, said, “It’s clear that a lot of shoppers are now refusing to pay a premium for their groceries. As we progress into 2023, we are seeing more customers coming through our doors, switching spend to Lidl from premium supermarkets.
'We know they switch to us to make savings, but then they stay with us when they realise that they’re not having to compromise on quality.”
Independent analysis conducted by The Grocer of shopping lists across the nation, from fresh produce to branded items, found Lidl GB was £10.31 cheaper than Sainsbury’s and £24.82 cheaper than Waitrose. The Super 33 monthly price comparison also revealed that Lidl GB was cheapest for 21 items.
Last week, the discounter announced plans to invest £4bn into British food business, accelerating initial spending plans announced in 2019, which saw Lidl GB commit to a five-year £15 billion investment in the British Food Industry across FY20 – FY25, with the figure now expected to hit £17bn.