Lidl near overtaking Morrisons as UK’s fifth-biggest grocery store

Lidl is near overtaking Morrisons to change into the UK’s fifth-biggest grocery store chain after a gross sales rise as consumers tried to offset greater family payments with low cost groceries.

The German-owned discounter elevated gross sales by 10.7% within the three months to 11 August, in accordance with the newest market share knowledge from analysts at Worldpanel, previously often called Kantar. This was greater than double the tempo of the broader market, which rose 4.5%.

That put Lidl’s share of the grocery market at 8.3%, 0.1 share factors off Morrisons’ share of 8.4%, because the Bradford-based chain continued to battle with gross sales up simply 0.9%.

Morrisons is making an attempt to show round efficiency after increase money owed in a £7bn takeover by the US personal fairness group Clayton, Dubilier & Rice in 2021.

Tesco, the UK’s largest grocery store chain , notched up gross sales progress of seven.4%, taking its market share to twenty-eight.4%, effectively forward of any rival. Its closest competitor, Sainsbury’s, elevated gross sales by 5.2%, taking its market share to fifteen%.

The UK’s quantity three chain, Asda, additionally continues to have difficulties. Its gross sales have been down 2.6% regardless of efforts to show round efficiency after the return of its former boss Allan Leighton as chair.

Asda is at risk of being overtaken by the discounter Aldi, which is only one share level behind it with a market share of 10.8%. Aldi’s gross sales grew 4.8% previously three months.

Aldi and Lidl proceed to quickly open shops, placing them on observe to enter the highest tier of British supermarkets and disrupt the standard “big four”.

Asda and Morrisons’ progress is behind the 5% degree of grocery inflation registered in August by Worldpanel, suggesting the quantity of inventory they bought has dropped.

Worldpanel stated inflation had eased 0.2 share factors in August from the 5.2% charge registered in July as costs of pet food, sweets and glowing wine, together with champagne, fell again.

Fraser McKevitt, the top of retail and client perception at Worldpanel, stated: “We’ve seen a marginal drop in grocery price inflation this month, but we’re still well past the point at which price rises really start to bite and consumers are continuing to adapt their behaviour to make ends meet.

“What people pay for their supermarket shopping often impacts their spending across other parts of the high street, too, including their eating and drinking habits out of the home.”

He stated informal eating and quick meals eating places had recorded a specific decline in guests over the summer season, and such journeys had fallen by 6% throughout the three months to mid-July 2025 in contrast with final yr. Nevertheless, espresso outlets bucked the pattern as their gross sales continued to rise.

Whereas slicing again on eating out, households appeared extra ready to deal with themselves at house. Gross sales of branded items have been up 6.1%, rising quicker than own-label options, which rose 4.1%, a turnaround from earlier within the yr. Premium own-label items, akin to Sainsbury’s Style the Distinction or Tesco’s Most interesting ranges, have been additionally up strongly – by 11.5%.

Whereas nonetheless comparatively excessive, the potential peak in inflation may very well be excellent news for the chancellor, Rachel Reeves, as she weighs spending cuts or tax rises in her autumn finances.