German Supermarkets Take The Fight To UK Competitors

High investment and low prices are shaking up the UK supermarket sector. German retailers Aldi and Lidl are outpacing their UK competitors with increased investment and lower prices, disrupting the established order, Garfield Myrie reported for Euronews.

Lidl’s market share grew to a record 8.1%, up from 7.7% in 2023. I Photo: TCYH Wikimedia Commons

Aldi is stepping up its challenge to UK rivals with the announcement of a record £1.4 billion (€1.6 billion) investment in new stores and lower prices.

The two-year plan is aimed at accelerating Aldi’s expansion across the UK and closing the gap on the country’s big three supermarket chains. More than 100 existing stores will be refurbished, and 23 new stores will open by the end of the year.

The capital investment will add to Aldi's existing network of 1,020 stores and a workforce of over 45,000. Aldi also plans to expand its 11 regional distribution centers and update the technology infrastructure supporting its operations.

Lidl, now ranked the sixth-largest supermarket in the UK, operates 11,000 stores in 32 countries, including more than 800 in the UK.

Consumer data company Kantar reported that Lidl's sales rose 10.9% year-on-year for the 12-week period ending on May 12, 2024, driven by its in-store bakery and successful loyalty scheme.

Lidl’s market share grew to a record 8.1%, up from 7.7% in 2023. The chain has also earned praise within the UK retail sector, winning Grocer of the Year at the UK Retail Week Awards in March.