Aldi and Lidl, two German-based discount supermarkets, are gaining UK market share through a seemingly never-ending price war against the local grocery retailers that once dominated the industry.Consumer behaviour suggests that cash-strapped shoppers aren't completely returning to pre-recession buying patterns but continuing to seek out bargains and stretch their pounds in certain product categories.
Today, Aldi and Lidl are so well-known that these grocery names topped You.Gov's recent BrandIndex, exceeding the brand ranking of the BBC, John Lewis and other leading brands.
Lidl's newest strapline is Big on quality, Lidl on price, calling attention to its competitive strengths. For several years, Lidl has steadily increased its market share, and 2016 was its best UK holiday trading period ever.
Aldi is promoting its pay packages for staff, showing that employees make more than the minimum wage and putting pressure on rivals to increase pay as well--adding to the goodwill its brand enjoys. Like Lidl, Aldi's 2016 holiday trading period was its best ever in the UK, with higher market share as a result.
How will Tesco, Morrison's, Sainsbury's and John Lewis fight back in 2017?
