German-owned discounter Aldi has overtaken Morrisons to become Britain's fourth-biggest supermarket group, helped by its popularity during the cost of living crisis, according to industry data published on Tuesday.
Market researcher Kantar said Aldi's sales increased 18.7% over the 12 weeks to 4 September, taking its UK grocery market share to 9.3% from 8.1% a year ago. Morrisons' sales fell 4.1%, with its share falling to 9.1% from 9.8%.
Morrisons had been No. 4 since it took over Safeway in 2004. It has been owned by U.S. private equity firm Clayton, Dubilier & Rice (CD&R) since October.
“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," said Fraser McKevitt, Kantar's head of retail and consumer insight.
The researcher said grocery inflation hit 12.4% in the four weeks to 4 September, another record, adding £571 ($670) to the average annual grocery bill.
It said products like milk, butter and dog food are jumping up especially quickly at 31%, 25% and 29% respectively.
Kantar said total grocery sales by value rose 3.8% in the 12 week period, with sales of the very cheapest own label products up by a third compared with a year ago.
UK grocers' market share and sales growth (%)
|Market share 12 wks to Sept. 4 2022||Market share 12 wks to Sept. 5 2021||% change in sales (yr-on-yr)|