Aldi has overtaken Morrisons for the first time
(Picture: PA Archive)Aldi has become the fourth largest supermarket in the UK for the first time as cash-strapped shoppers try to counteract the cost of living crisis.
Figures from data company Kantar found that Aldi’s market share rose by 1.2 percentage points over the last three months, meaning it has overtaken Morrisons to infiltrate the country’s so-called ‘big four’ grocers.
Shoppers are taking steps to manage their budgets amid a squeeze on household income brought about by rising inflation and higher energy prices.
Aldi UK & Ireland CEO Giles Hurley said: “Shoppers are prioritising value like never before and voting with their feet by choosing Aldi over full price traditional supermarkets. “We are doing everything we can to make food shopping as affordable as possible for millions of households... without compromising on quality.”
Kantar’s figures showed that grocery price inflation hit a new record of 12.4% in August, adding £571 to the average annual grocery bill. Milk, butter and dog food had jumped up especially quickly at rises of 31%, 25% and 29% respectively.
The resulting hunt for bargains has meant people have broadened the range of stores they visit, with the discount grocers benefiting.
Aldi’s sales rose by 18.7% over the 12 weeks to 4 September 2022, reaching a 9.3% market share. Meanwhile Lidl grew sales by 20.9% and its market share has increased to 7.1%.
Fraser McKevitt, head of retail and consumer insight at Kantar, 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.”
He said an expanded shopper base had led to “dramatic sales increases” for Aldi and Lidl in recent months, and that across all supermarkets, sales of the cheapest value own label products are up by a third compared to a year ago.
“In what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer best value, in particular by expanding their own-label ranges,” McKevitt said.
Overall spending on all retailer own-label lines was £393 million higher during the last four weeks, pushing own-label’s share of the market to 51.1%.
Elsewhere, Iceland won market share in the latest period and its sales were 5.8% higher than in 2021.
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.
