E Point Perfect

Aldi to overtake Morrisons as UK number four grocer within weeks

Aldi to overtake Morrisons
Aldi is set to become part of the Big Four within weeks
// Aldi is closing in on becoming UK number four grocer
// Morrisons position under threat as cost of living crisis boosts discounters

German grocery discounter Aldi is set to overtake Morrisons’ market share in a move that will shake-up the UK’s ‘big four’ supermarket hierarchy within weeks.

As the cost of living crisis bites, Aldi increased its market share to 9.1% in the three months to 7 August, according to the latest figures from Kantar.

Aldi’s market share is up from 8.2% a year ago, while Morrisons’ share dropped from 10% to 9.3% over the same period, keeping it only just ahead of the German powerhouse.

Shore Capital retail analyst Clive Black said: “In very short order we’ll be talking about a new Big Four: Tesco, Sainsbury’s, Asda and Aldi. I think in the next one or two months, and there’s no going back for a while.”

Recent data from rival research firm Nielsen suggested Aldi has already overtaken Morrisons, which has occupied the fourth spot since it took over Safeway in 2004.

Aldi and fellow German discounter Lidl have been boosted by shoppers defecting from other major supermarket groups as they struggle to keep household costs down.

READ MORE: Aldi beats Lidl to keep its crown as the UK’s cheapest supermarket

Kantar said that supermarket inflation surged to 11.6% last month, its highest level since at least 2008, meaning that households are paying an extra £533 a year, or £10.25 a week, on their supermarket shop, according to Kantar.

Conversely, Morrisons has struggled since its £7bn sale last year to US private equity firm Clayton Dubilier & Rice – a deal which only won approval from the competition watchdog in June. It has been redoubling efforts to appeal to cash-strapped shoppers.

German discounters Aldi and Lidl now account for 16.1% of the total UK grocery market, up from less than 4% in 2008, and Kantar said that Aldi and Lidl garnered a combined 1.8 percentage points of grocery sales over the last 12 weeks, representing a £2.3bn annual shift in spending.

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