Aldi joins ‘big four’ as UK shoppers look to save money

Aldi has overtaken Morrisons to become the fourth-biggest supermarket in the UK.

Research firm Kantar said that as living costs rise, consumers are shopping around by visiting more stores and this is benefiting the discounters.

In the 12 weeks to 4 September 2022 Aldi’s sales rose by 18.7% and the chain reached a market share of 9.3%, making it the country’s fourth largest supermarket for the first time. Meanwhile Lidl saw its sales grow by 20.9% and its market share increased to 7.1%.

A decade ago, Tesco, Sainsbury’s, Asda and Morrisons together accounted for over three-quarters of the sector but that traditional “big four” is no more, said Kantar’s head of retail and consumer insight, Fraser McKevitt.

Tesco is still well ahead of its rivals with a market share of 26.9% after a 1.9% boost to sales, while Sainsbury’s is in second place with 14.6% of the market followed by Asda on 14.1%.

Morrisons, now in fifth place, holds 9.1% of the market.

Kantar’s data also revealed that grocery price inflation hit 12.4% in August, a new record. It means that the average annual grocery bill will increase by £572 if shoppers don’t make changes to what they buy and how they shop to cut costs.

UK inflation reached a four-decade high of 10.1% in July and the Bank of England has said that it expects the UK to fall into recession at the end of this year, continuing until early 2024.