The latest industry report shows Lidl is on the brink of overtaking Morrisons to become the UK’s fifth-largest supermarket, after posting sales growth well ahead of its rivals this summer as shoppers sought ways to offset rising household bills.
According to new market share data from Worldpanel (formerly Kantar), the German-owned discounter grew sales by 10.7% in the three months to 11 August, more than double the wider grocery market’s 4.5% growth rate. This left Lidl just 0.1 percentage points shy of Morrisons’ 8.4% share, as the Bradford-based chain managed only a 0.9% rise in sales.
Morrisons continues to grapple with the legacy of its £7bn takeover by Clayton Dubilier & Rice in 2021, which left the chain heavily indebted and struggling to regain momentum.
Meanwhile, Asda, the UK’s number three grocer, also saw sales fall 2.6% despite turnaround efforts under chairman Allan Leighton. The decline leaves Asda vulnerable to being overtaken by Aldi, which posted 4.8% growth and now sits just one percentage point behind on market share.
Both Aldi and Lidl are accelerating store openings, cementing their rise into the upper tier of British supermarkets and challenging the dominance of the traditional “big four”.
Notably, the weak performances of Asda and Morrisons fell short of the 5% grocery inflation rate recorded by Worldpanel in August, suggesting a drop in the volume of goods sold.
