Morrisons loses fourth place supermarket spot to Aldi

Aldi has overtaken Bradford-headquartered supermarket chain Morrisons to become the fourth-largest UK supermarket for the first time, according to data from research firm Kantar.

Kantar says discounters are snapping up more market share as shoppers try to manage their budgets. Food prices have been rising quickly, and are helping to increase prices generally, as energy costs climb.

Kantar reports that food price inflation reached 12.4% in August, with the average annual grocery bill rising to £5,181.

Fraser McKevitt, Kantar head of retail and consumer insight, said: “Shoppers are taking steps to manage their budgets including broadening the range of stores they visit, with the discount grocers benefiting.

“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.”

Kantar said Aldi’s sales rose by almost a fifth in the 12 weeks to 4 September compared with a year earlier, giving it a market share of 9.3%. Meanwhile, Morrisons’ sales declined by 4.1%, with its market share falling to 9.1%.

Sales at discounter Lidl increased by more than a fifth, and it grew its market share to 7.1%. Aldi and Lidl have both been expanding and growing their market share in Britain during the past decade.