Aldi grabs fourth biggest spot from Morrisons
Aldi has overtaken Morrisons as Britain’s fourth largest supermarket chain, according to the latest data.
The German group saw its market share rise by 1.2% over the 12-week period to 4 September, to claim 9.3% of the GB supermarket sector, compared to Morrisons’ 9.1%.
While Aldi has nudged ahead of Morrisons in recent short-term figures, today marks the first time retail data analyst Kantar has officially named Aldi as Britain’s fourth largest supermarket chain.
Aldi’s sales rose by 18.7% over the 12 weeks over the period as consumers sought cheaper alternatives amid soaring food prices.
Fraser McKevitt, head of retail and consumer insight at Kantar, pointed out that “shoppers are taking steps to manage their budgets”, such as “broadening the range of stores they visit”.
Lidl grew sales by an even bigger margin, up 20.9%, with a market share which has increased to 7.1%.
McKevitt continued: “At the start of the 2010s, Tesco, Sainsbury’s, Asda and Morrisons together accounted for over three quarters of the sector but that traditional big four is no more.
“The discounters have seen dramatic sales increases in recent months, bringing more and more customers through their doors. Aldi has done well to expand its shopper base, supported by consistent store openings, and with 14.2 million consumers visiting the grocer in the past three months.”
For the fourth month in a row Lidl was the fastest-growing grocer and recorded its strongest sales performance since October 2014.
Iceland also won market share in the latest period, reporting sales figures which are 5.8% higher than in 2021, while Tesco, Sainsbury’s and Asda all achieved their best sales performance since April 2021.
Tesco’s market share now stands at 26.9% following a 1.9% boost to sales, while Asda currently holds 14.1% of the market following 2.2% sales growth. Sainsbury’s accounts for 14.6% of the market.
Russ Mould, investment director at AJ Bell, said the latest data “made for grim reading” for Morrisons. He said that losing its status as the UK’s fourth largest supermarket to Aldi “feels like a symbolic moment.”
He added: “The appeal of the German discounters continues to grow as household budgets are increasingly squeezed. This presents a challenge to Tesco and Sainsbury’s too.
“The fact that Aldi and Lidl offer not only bargain prices but also decent quality products and produce makes the established players jobs much harder.”