German-owned discounter Aldi has overtaken Wm Morrison Supermarkets to become Britain's fourth-biggest supermarket group, according to industry data published today.
Market researcher Kantar said Aldi's sales rose 18.7% in the 12 weeks to September 4, taking its UK grocery market share to 9.3% from 8.1% a year ago as consumers look for value during the cost of living crisis.
Morrisons's share fell to 9.1% in the period as its sales were down 4.1% compared to last year.
Although still trailing market leader Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY) and Asda, Aldi's rise was expected as it has enjoyed growing its market share while Morrisons has retreated under its new private equity owners.
Aldi and fellow discounter Lidl now account for 16.2% of the market, which compares to almost 27% for Tesco, 14.6% for Sainsbury's and 14.1% for Asda.
Aldi +18.7%
Lidl +20.9%
No surprises here. Customers learnt lessons from the last recession and they know where to go, where to spend more and how to save money, too... pic.twitter.com/qV1hTvLNHj
— Steve Dresser (@dresserman) September 13, 2022
“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," said Fraser McKevitt, Kantar's head of retail and consumer insight.
The researcher said grocery inflation hit 12.4% in the four weeks to September 4th, another record, adding £571 to the average annual grocery bill if consumers do not make changes and buy the same products.
Products like milk, butter and dog food jumped especially quickly at 31%, 25% and 29% respectively.
“It seems there’s no end in sight to grocery inflation as the rate at which food and drink prices are increasing continues to accelerate," McKevitt said.