German discounters Aldi and Lidl continue to make big inroads into UK grocery market, study finds
- Credit: Archant
Discount stores operating across Suffolk and Essex are powering ahead when it comes to growth, a study suggests.
German supermarket chains Aldi and Lidl and variety discounters Poundland, Home Bargains and Poundstretcher are driving market growth, accounting for a 40.2% share - or £9.8bn out of a total of £24.1bn - according to figures from IGD.
Aldi is set to open 1,200 stores by 2025, and Lidl is opening new outlets at a rate of 50 to 60 a year as consumers change their perception of chains.
According to IGD, discounters will play a significant role in driving 12.5% growth in the UK food and grocery industry by 2024, contributing £4 in every £10 of growth over the next five years.
Aldi has plans to open new stores in Europa Way and Martlesham Heath in Ipswich, on Gipping Way, Stowmarket, at Gateway Retail Park, Lowestoft, and Exning Road, Newmarket, to join its existing outlets in Ipswich, Bury Saint Edmunds, Sudbury and Haverhill.
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Lidl has stores in Ipswich, Stowmarket, Haverhill, Felixstowe and Lowestoft in Suffolk, with a store in Beccles due to open in autumn 2019.
In Essex, it opened a second store at Clacton, and has submitted plans to open a second store in Colchester, at Gosbecks Road.
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A fifth (21%) of shoppers say they currently use food discounters for the majority of their shopping and 26% are expected to do so by 2022, with the average shopper now make three trips to food discounters a month.
Online shopping will be the fastest growth area, but will be only just ahead of discount at 43.8% or £5.1bn, according to IGD.
The study says people make 24 grocery shopping trips a month and spend 18.3 hours planning, travelling, shopping and unpacking.
IGD spokesman Simon Wainwright, said: "Food and variety discounters continue to grow their market share rapidly, fuelled by ambitious store-opening programmes.
"With many food discount shoppers now perceiving Aldi and Lidl as supermarkets rather than discounters, and more targeted investments in categories such as fresh produce, meat, bakery and beauty, the channel will continue to experience notable growth."