Whilst the figures still show that Tesco are at the top of the leader board with a market share of 28% followed by Asda at 17.1%, Sainsbury’s at 16.5% and Morrison’s at 11.1% you would be forgiven for assuming that LIDL and ALDI pose no threat with a meagre 3.6% and 4.8% respectively.
However it can’t be denied that the majority of the UK population have been keeping a close eye on their spending over recent years, with high levels of unemployment and a recent recession, ALDI and LIDL have appeared with their impossibly low prices, luring budget shoppers in, whilst the bigger supermarkets try and compete, but with the majority of their products brand named items, they have little flexibility with price, leaving ALDI to benefit from a growth in market share of 35.3% which is their best figure to date.
In the run up to Christmas the strain on our pockets will be heavier than any other time of the year, with an endless shopping list from decorations and presents to the food for the big day, this seems like the best time for ALDI and LIDL to really shine, both offer a diverse range of Christmas treats for the festive season and everything you need for the big day, there should be no reason to shop anywhere else. But will shoppers be able to resist the temptation of premium prices and brand names, just to create that feeling of indulgence associated with Christmas? Of course we know deep down the only real difference in quality and taste is a brand name and packaging, but I don’t think I would be the only one that would be disappointed at receiving an ALDI chocolate reindeer than a Lindt gold reindeer on Christmas day.
Brand image has a massive impact on our shopping habits and ALDI and LIDL’s no frills reputation may leave customers desiring a little more this Christmas. However ALDI’s Christmas advert was very engaging; it was amusing, fun and showcased quality products. It showed customers that ALDI is relevant at Christmas; you won’t be sacrificing anything even if you do spend less. I was disappointed by LIDL’s advert they focused very strongly on the surprise that LIDL products could be so good, and the obvious references to brands such as M&S came across as very ‘try-hard’, as if they are saying ‘we swear we’re good too’.
The difference is that big supermarkets like Tesco not only benefit from their own advertising, they benefit from Coca Cola’s advertising, Cadbury’s advertising and all the other brands that they sell, because people know where they can find these brands; the demand is there and they supply it. ALDI and LIDL on the other hand only have one advert for all their brands.
Whatever may happen at the end of the Christmas season, ALDI and LIDL definitely won’t be complaining, they may not be able to top Tesco on the leader board just yet, but who’s to say that won’t be the case in years to come.
By Rachael Popplewell, Year 13