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    Don't Discount Aldi and Lidl
06/10/08

Claims that the credit crunch is making people turn their attention to the hard discounters seem to be borne out in the latest issue of Meat Demand Trends.

www.aldi.co.uk

Aldi's Hounslow store

The publication from AHDB Meat Services shows Aldi and Lidl outperformed all other retailers in terms of increased spending on fresh meat in the 12 weeks ending 10 August 2008 although the discounters' combined share of the fresh meat market is still only two per cent.

Beef mince, stewing beef and pork chops are the main cuts sold by discounters. Pork chop sales were up 60 per cent, compared with a total trade fall of three per cent.

They have a five per cent share of the total food market but eight per cent of the pork chop market which means they are over-indexing in pork chops.

This is not the case for beef mince, despite a 41 per cent increase in sales compared with a year ago, the discounters still only have a four per cent share of the beef mince market.

The report examines the growth in the number of discount food stores in the UK over the last six years.

As well as new store openings, the growth in discounters' grocery sales this year is being generated by more shoppers spreading their food purchases across several retailers in search of better bargains. More customers in the higher social groups are shopping in discount food stores.

Senior Market Analyst Sue Fisher said: "There is potential for the discounters to increase their fresh meat sales.

"Although Lidl and Aldi are not a threat to the big UK retailers, they do provide serious competition to the likes of Iceland and other low-cost multiples."

The report on growth in the discounters' fresh meat sales forms part of the September 2008 edition of Meat Demand Trends from the Economics team of AHDB Meat Services. It is available by ringing Jo Stanton on 01908 844396 or email jo.stanton@ahdbms.org.uk

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