German discounter Aldi has overtaken Morrisons to become Britain’s fourth-largest supermarket group, helped by its popularity during the cost-of-living crisis, industry data published Tuesday showed.
Market researcher Kantar said that the sale of Aldi in the 12 weeks to 4 sept. increased by 18.7%, increasing Aldi’s market share in the UK grocery business from 8.1% a year ago to 9.3%. Morrisons ‘ sales fell 4.1%, reducing its market share from 9.8% to 9.1%.
Aldi follows market leader Tesco, Sainsbury’s and Asda. Aldi and fellow discounter Lidl account for 16.4% of the market.
Morrisons had been No. 4 since it acquired Safeway in 2004. It has been owned by the American private equity firm Clayton, Dubilier&Rice (CD&R) since October.
“In the early 2010s, Tesco, Sainsbury’s, Asda and Morrisons together accounted for more than three-quarters of the sector, but that traditional Big Four is no more,” said Fraser McKevitt, Kantar’s head of Retail and Consumer insight.
The researcher said grocery inflation was 12.4% in the four weeks to september 4, another record, raising the average annual grocery bill by 571 pounds ($670).
It said products like milk, butter and dog food jump up particularly quickly by 31%, 25% and 29%, respectively.
Kantar said total grocery sales increased in value by 3.8% in the 12-week period, with sales of the very cheapest home-brand products up by a third compared to a year ago.
UK grocery market share and revenue growth (%)
Market share market share % change in
- Tesco 26.9 27.4 1.9
- Sainsbury’s 14.6 15.0 1.5
- Asda 14.1 14.4 2.2
- Aldi 9.3 8.1 18.7
- Morrisons 9.1 9.8 -4.1
- Lidl 7.1 6.1 20.9
- Cooperation 6.5 6.5 2.7
- Waitrose 4.7 5.1 -4.7
- Iceland 2.4 2.3 5.8
- Ocado 1.7 1.7 5.2
