Aldi overtakes Morrisons to become the UK’s fourth largest supermarket

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Grocery price inflation hits record high, prompting buyers to switch to discounted brands

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ldi has become the fourth largest supermarket in the UK for the first time as cash-strapped shoppers try to combat the cost of living crisis.

Data from data company Kantar found that Aldi’s market share has risen 1.2 percentage points over the past three months, meaning it has overtaken Morrison to infiltrate the country’s so-called ‘Big Four’ grocers.

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Amid pressure on household incomes due to rising inflation and high energy prices, buyers are taking steps to manage their budgets.

Giles Hurley, CEO of Aldi UK & Ireland, said: “Buyers are prioritizing value like never before and voting with their feet, choosing Aldi over full-price traditional supermarkets. “We make millions without compromising on quality. We are making every effort to make food shopping for households as affordable as possible.”

Data from Kantar shows that grocery price inflation hit a new record of 12.4% in August, adding £571 to the average annual grocery bill. Milk, butter, and dog food were especially sharply increased by 31%, 25% and 29%, respectively.

The resulting bargain hunting means people have broadened the range of stores they visit, benefiting discount grocers.

Aldi sales grew 18.7% in 12 weeks to September 4, 2022, reaching 9.3% market share. Meanwhile Lidl’s sales grew 20.9% and its market share increased to 7.1%.

Fraser McKevitt, head of retail and consumer insights at Kantar, said: “In early 2010, Tesco, Sainsbury’s, Asda and Morrison together accounted for more than three quarters of the sector, but the traditional big four are no longer there.”

He said the expanded shopper base has led to “dramatic sales growth” for Aldi and Lidl in recent months, and that of all supermarkets, sales of the cheapest-priced self-label products have risen by a third compared to a year ago. .

McKewitt said, “In a fiercely competitive arena, supermarkets are responding to ensure that they acknowledge the challenges consumers are facing and in particular offer the best value by expanding their own label categories.” provide.”

Overall spending across all retailer’s own-label lines exceeded £393 million during the past four weeks, bringing own-label market share to 51.1%.

Elsewhere, Iceland won market share in the latest period and its sales were up 5.8% compared to 2021.

Tesco, Sainsbury’s and Asda all achieved their best sales performance since April 2021. Tesco now has a market share of 26.9% after a 1.9% increase in sales, while Asda currently holds a 14.1% market share after a 2.2% sales increase. Sainsbury’s has a market share of 14.6%.

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