As Brexit Nears, ‘Discounters’ Gain Ground in U.K. Supermarket Wars
Though the online giant’s Amazon Fresh and Pantry services are available in Britain, the company’s
market share here amounts to less than one percent, according to Kantar Worldpanel
“The difference in price,” Ms. Carr said, “it’s really significant.”
Aldi and Lidl, both of which are privately held, made their first ventures into Britain in the 1990s, focusing on price.
Major retailers like Morrisons, Sainsbury’s, Tesco
and Walmart’s Asda all jostle for market share by offering loyalty schemes, online shopping, home delivery and special offers (Amazon, by comparison, is a relative minnow in the grocery sector).
Spending at the two stores grew by double digits in the 12 weeks to mid-July, according to Kantar Worldpanel,
a research group, outpacing not only the wider industry but every other major supermarket.
Inflation was 2.6 percent year-over-year in June, higher than the Bank of England’s target,
and the central bank says it could rise to 3 percent in the fall.
The two retailers stock significantly fewer products — typically only a tenth as many as
competitors — with a greater focus on items sold under their own lower-cost brands.
The vote last year to leave the European Union, known as Brexit, damaged confidence in the economy,
and the pound has since fallen more than 10 percent against the dollar.
