March 2014. STEPHEN SPRINGHAM. UK DISCOUNT GROCERY. Structural not cyclical change. Senior Retail Analyst. Market Structure and Channel Trends Aldi and Lidl in the UK Key Strategic Initiatives Further Reading. Contents. 1. Market Structure & Channel Trends.
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UK DISCOUNT GROCERY
Structural not cyclical change
Senior Retail Analyst
Aldi and Lidl in the UK
Key Strategic Initiatives
German giant Aldi first enters the UK (opening its first store the following year). The UK business falls under the operating umbrella of Aldi Süd.
Aldi’s compatriot and arch-rival Lidl opens its first UK stores. Lidl is part of the German Schwarz Group grocery business.
Having been slowly wound down by its parent, the residual Kwik Save business is liquidated. At its peak (the early 1990s), the business had over 1,000 stores and a 7% share of the UK grocery market.
The UK Netto business was sold to Asda (owned by Walmart) for GBP778m (USD1.3bn). Asda retained 147 stores and was forced to offload 47 others on competition grounds. Netto had around 0.6% of the UK grocery market.
LidlUK surpasses the 500 store benchmark.
Aldi UK surpasses the 500 store benchmark.
Long-established indigenous soft discounter Kwik Save was acquired by supermarket operator Somerfield (now part of the Co-op) for GBP1.3bn (USD2.1bn).
Nettolaunches in the UK. The business is part of the Danish retailer Dansk Supermarked Group.
France pioneered the hypermarket, Germany the hard discounter. The UK has a limited discounter heritage.