Using Big Data to analyse Aldi / Lidl growth
Location remains the principal driver of grocery store choice for consumers. We have compiled a proprietary database of over 8,000 store locations throughout the UK and calculated over 62 million distance pairs between them. We find that even in areas that were seemingly saturated with Aldi and Lidl stores, there were significant pockets of space for store growth. Tesco appears most at risk from Aldi / Lidl growth. Of Tesco's 743 UK supermarkets, 65% have an Aldi or a Lidl within a 2km radius, while Morrisons has weathered the worst of discounter growth. With 74% of its 491 supermarkets already having an Aldi or a Lidl within 2km. Sainsbury's 'southern stronghold' is real, but not relevant. Only 21% of Aldi / Lidl outlets are in the southeast versus 42% for Sainsbury but this has not slowed share losses.