Aldi has overtaken Morrisons to become the UK’s fourth largest supermarket.
The German discount retailer has now taken 9.3 per cent of the market share – a rise of 1.2 per cent over the previous 12-week period – with Morrisons dropping to 9.1 per cent. And in a sign of the times as shoppers try and manage their ever-decreasing budgets more effectively by eking out some bargains, Lidl recorded its strongest sales performance since October 2014.
Data analytics company Kantar produced the latest results, that showed Tesco still way out in front with a 26.1 per cent share, Sainsbury’s (14.6 per cent) in second, Asda (14.1 per cent) third, with Morrisons – who have recently been taken over by by private equity group Clayton, Dubilier & Rice – now dropping to fifth. But according to Fraser McKevitt, head of retail and consumer insight at Kantar, the previous ‘big four’ of the supermarket world is now no more.
He said: “Back 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.
“Meanwhile, for the fourth month in a row Lidl was the fastest-growing grocer and recorded its strongest sales performance since October 2014.”
Another discount retailer, Iceland, have also performed well, reporting sales figures 5.8 per cent higher than in 2021. With the annual grocery shop now £571 higher than it was last year, it is no wonder cheaper stores are now gaining traction from more footfall.
Products like milk, butter and dog food are seeing particularly sharp increases at 31 per cent, 25 per cent and 29 per cent, respectively. Soaring prices have prompted shoppers to opt for the very cheapest own-label value products, sales of which have jumped 33 per cent compared to last year.
McKevitt added: “Shoppers are taking steps to manage their budgets including broadening the range of stores they visit, with the discount grocers benefiting.”
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