Shoppers are enjoying cheaper prices at the tills as supermarkets vie to undercut their rivals, new figures have found.
Groceries now cost 1.7% less on average than a year ago, saving the average shopper £58 over that time, according to analysts Kantar Worldpanel.
The rise of discounters Aldi and Lidl has played a key role as the traditional supermarket giants are forced to slash prices in a bid to lure customers back through their doors.
Separate research from analysts Nielsen shows Aldi and Lidl now command more than a tenth of the grocery market, rising from 8.8% to 11% in the last 12 months.
Over the same period, Tesco, Asda, Sainsbury’s and Morrisons saw their combined share slide from 71.7% to 69.6%.
Similarly, in the last three months the big four’s sales either fell or remained flat when compared with the same time last year, while Aldi’s and Lidl’s sales rocketed 27.6% and 23.3% respectively.
The other supermarkets will be particularly disappointed that discounter growth shows little sign of slowingMike Watkins
“The other supermarkets will be particularly disappointed that discounter growth shows little sign of slowing,” said Nielsen’s retail and business insight head Mike Watkins.
“Aldi’s year-on-year rise was their highest in nearly 18 months whilst Lidl’s was their highest in nearly a year.”
And it appears the big four are being squeezed on both sides, with the upper market stores enjoying healthy growth.
Marks & Spencer had the highest growth in year-on-year sales (3.0%) while Waitrose had the largest increase in new shoppers (2.1%), according to Nielsen.