Wiggle chairman and former Asda boss Andy Bond has said the big four grocers “aren’t providing the appeal they once did” for shoppers as they lose market share to the discounters.
Bond said Tesco, Asda, Sainsbury’s and Morrisons “aren’t satisfying distressed consumers’ needs” as their cumulative market share falls in stark contrast to rapid growth at German discounters Aldi and Lidl.
Bond told The Telegraph: “It’s interesting because the top four supermarkets have cumulatively seen their first decline in market share for many years and that’s partly to do with the genuine appeal of the discount sector.
“That shows the big four aren’t providing the appeal they did and aren’t satisfying distressed consumers’ needs as much as they claim.”
The Wiggle boss dismissed suggestions Tesco could spark a price war as it looks to win back market share. “The claims of cutting prices are totally irrelevant if profits are going up. The reality is that there is no price war, there never has been a price war,” he said.
Bond also criticised high levels of executive pay, stating that the money earned by senior executives at the major grocers has become “slightly gratuitous” compared with average salaries in those companies.
Amazon is currently worth $106bn (£67.9bn), while Walmart – the world’s largest retailer – is worth $252bn (£161.4bn).
Bond, who is also chairman of fashion chain Republic, said: “Almost certainly Amazon will have toppled, or at least be vying with, Walmart for the top slot in 2020. 10 years ago people would have said that was ridiculous.”
He also reiterated his intention to set up bricks and mortar Wiggle stores in the future, but did not give a timeline.
Private equity firm Bridgepoint bought the group in a £180m (£115.3m) deal last year and a large destination shops are on its agenda.