Marker

Question 1

Discounters

Answer 1

Aldi at negative growth, down 0.1% y/y revenue. Lose 0.3% marker share.

Lidl remains solid, up +7.4% y/y, +0.40% y/y

However, kantar data suggests Lidls growth is flattered by cannibalisation of Aldi and that switching momentum vs Tesco and Sainsbury has meaningfully slowed

Space growth at Aldi&Lidl is at a 7yr low, 0.1% vs 3%

Question 2

Online food growth in covid

Answer 2

Online food retail grew 79% in covid, undoubtedly caused sticky consumption habits and capitalising is important

Can grow whoosh and market heavier to improve awareness

Question 3

Discounter growth and breaking up the big 4

Answer 3

Aldi & Lidl market share at 17.8% up from … 10 years ago

Big 4 broken up as Aldi overtook Morrisons market share in 2022

Living wage to increase by 10% to £11.44, labour pledged to reduce eligible age from 21->18 (large portion of supermarket employees)

Question 4

Potential acquisitions?

Answer 4

Low net debt at 2.2x EBITDA, far lower than peers, could invest in the online retail space

Question 5

What could they do to diversify risk?

Answer 5

Expansion on non food items - M&S performing brilliantly as a result of clothing performance and revamp, sainsburys 25% of sales non food

Question 6

What would you do if you were Tesco ceo?

Answer 6

Heavy focus on marketplace, marketing and Whoosh - need to tap into online grocer market, growth potential there for all to see as Ocado have been the fastest growing supermarket for multiple consecutive months

Online grocer market grew by +7% in June month on month