Friday, 22 Nov 2024

Brexit victory as British supermarket surges despite ‘boost’ for German rivals

Sainsbury’s is on the march, as shoppers are ditching budget German rivals Lidl and Aldi in favour of the classic British brand. Simon Roberts, the chief executive of Britain’s second biggest supermarket, said that Sainsbury’s upturn is down to consumers being time poor and wanting to get their food all in one place, rather than having to shop around for what they need.

Sainsbury’s resurgence comes despite the expected boost Brexit was expected to give Lidl and Aldi.

Following the vote to leave the EU, the cut price retailers were projected to handle Britain’s EU exit better, as their supply chains were leaner and they had a greater commitment to “localism”, rather than relying on imports.

However, Mr Roberts has revealed his supermarket is on an upward curve.

Mr Roberts said during Covid, “customers would have come to us for some products and they might have gone to one of the limited-choice discounters for other”, reported The Telegraph.

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“Now there’s a lot more on for people. There’s been this return to the office and, especially around Christmas, we’re all short of time.”

As a result, shoppers are “busy trying to manage a family, get to work, get the kids from school, get back in time”.

Sainsbury’s much larger range has become a point of convenience for time poor consumers. The British brand stocks 40,000 products compared to Lidl and Aldi’s 1500-2000.

Mr Roberts told the publication Mr Roberts: “We’re seeing customers doing trolleys with more products in more regularly. That’s quite a shift from where we were three years ago.”

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Sainsbury’s just recorded its highest market share gain since March 2013, with the supermarket commanding 15.6 per cent of the market, up from 15.2 per cent.

Aldi meanwhile slipped from 9.7 per cent to 9.6, according to new data from Kantar. However, unlike their fellow budget brand, Lidl claimed more market share than at the previous measure, up from 7.6 per cent at the end of October to 7.8 per cent.

Following Britain’s vote to leave the EU in 2016, it was projected that budget supermarkets would benefit the most from the shock result.

The experts at Kantar said at the time: “There are several factors which will help discounters Aldi and Lidl absorb the rise in food prices and inflation – namely the limited range, having the leanest supply chains in retail and most importantly their economies of scale.”

However, now both supermarkets’ limited product offerings may be to their detriment as time-strapped consumers look to sort their weekly shop in one fell swoop.

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