Aldi stakes its place as UK’s fourth largest supermarket as discounters attract market share

Aldi UK's headquarters in Atherstone

Aldi, which has its head office in Warwickshire, has overtaken Morrisons to become the fourth-largest UK supermarket as discounters continue to attract market share amid the cost of living crisis.

Kantar Worldpanel reported that Morrisons had a 9.1% share of the grocery market in the 12 weeks to 4 September compared with Aldi’s 9.3%.

Kantar said its data shows grocery inflation is at a new record rate of 12.4% last month – adding £571 to the average annual bill. The sum had stood at £533 in July.

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.

“The discounters have seen dramatic sales increases in recent months, bringing more and more customers through their doors.

“Aldi has done well to expand its shopper base, supported by consistent store openings, and with 14.2million consumers visiting the grocer in the past three months.”

Aldi trails market leader Tesco, Sainsbury’s and Asda, which all had their best sales performance since April 2021 during the month.

Only Morrisons and Waitrose saw declines in the period.

Meanwhile, sales at discounter Lidl rose by more than a fifth as it increased its market share to 7.1%, making it the sixth largest supermarket in Britain.