Aldi is poised to become the UK's fourth largest supermarket in less than a year.
The German discounter is predicted to to overtake Morrisons, according to the latest take-home grocery figures by market research company Kantar.
The prediction, in the Grocery Gazette, is based on figures released earlier this week showing Aldi’ s sales had risen by 7.9%, taking its UK market share to 9% – just behind Morrisons, which claimed 9.6% market share in the 12-week period to 12 June.
Morrisons is currently one of what's known as the Big 4 Grocers – Tesco, Sainsbury's, Asda and currently Morrisons. Tesco has the largest market share, at 27.3%, while Sainsbury’s currently holds 14.9% of the market and Asda has 13.7%.
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But with just 0.6% of the market share between them, Aldi is expected to overtake Morrisons’ 9.6% market share by this time next year. In the last five months, Aldi’s market share has grown by 1.2%, while Morrisons has fallen by 0.3%. If that trajectory continues, Aldi will overtake Morrisons in June 2023.
Although its figures are behind Aldi's, Lidl was the fastest-growing supermarket in the last three-months, with sales jumping 9.5% to secure a 6.9% market share. It is expected to overtake Morrisons in roughly four-and-a-half years if Morrisons' sales fall continues. In Europe, discounters traditionally account for 20% of the grocery retail market, so there could still be a larger share to be grabbed by Lidl and Aldi in the future.
Fraser McKevitt, head of retail and consumer insight at Kantar, said the shift is due to a combination of consumers choosing cheaper alternatives and increasing numbers of discount stores opening, giving shoppers more choice. “Shoppers have swapped branded items, which have declined by one per cent, for own-label products," he said. "Sales of these lines, which are often cheaper, have risen by 2.9%, boosted by Aldi and Lidl’s strong performances, both of whom have extensive own-label repertoires.”
Aldi opened its first UK supermarket in Birmingham in 1990, and now has nearly 1,000 stores throughout the UK. At first, it was viewed with suspicion by UK shoppers, who were used to the Big 4, but Aldi's growth has has seen its market share increase since it launched, and it has become increasingly popular due to the cost of living crisis. Last year, the retailer confirmed plans to add a further 100 stores to its UK chain by 2023 and around another 100 in the US.
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