Overall supermarket sales increased by 3.1% year-on-year in the 12 week period, marking the 17th period of growth in a row for Britain's grocers, according to Kantar Worldpanel.
Food sales rose 3.1 per cent in the 12 weeks to October 8, boosted in part by ongoing inflation.
"Aldi and Lidl collectively added an additional 390 million pounds ($517.9 million) in sales this quarter, which accounts for half of the entire market's overall growth this period", said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. Mckevitt also said that growing sales at Morrisons' stores "were supplemented by rapid expansion on its e-commerce platform", most notably in London and the south where online sales have risen 29%.
The combined market share of the two German retailers grew to 12% in the 12 weeks to October 8, up from 10.8% the prior year, the survey showed.
The Big 4 all enjoyed rising sales during the period, yet their market share continues to be chipped away by the discounters.
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Lidl remains Britain's fastest growing supermarket, with sales up by 16%, while Aldi grew by 13.4%.
Sales at Sainsbury's increased 1.9% in the 12 weeks, while market share dropped 0.2 points to 15.8%, with only 35% of group sales coming via price promotions from almost 40% a year ago.
Tesco's sales grew 2.1% though its market share shrank 0.3 percentage points to 27.9%.
Ocado continued to win a share of the online grocery market, which now includes around 18 per cent of the United Kingdom population. "Prices are rising fastest in markets such as butter, fish and cola with all major categories now registering inflation", Kantar added.
Kantar also reported that shoppers were stocking up for Christmas early.
GBP69 million has already been spent on chocolate confectionery boxes, which Kantar said was a near threefold increase on sales in August, while sales of mince pies reached GBP4 million and GBP1.1 million of Christmas puddings have been sold.
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