UK- The family-owned German discount supermarket chain Aldi has surpassed Morrisons to become the fourth largest grocery chain in the United Kingdom.
According to market research firm Kantar, Aldi’s sales increased by 18.7% in the 12 weeks leading up to September 4 and reached a 9.3% market share, making it the fourth-largest supermarket in the UK for the first time.
In contrast, Morrisons’ sales decreased by 4.1% during the same period, and it was demoted to fifth place in the UK supermarket league table as its market share fell from 9.8% to 9.1%.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Aldi has done well to expand its shopper base, supported by consistent store openings, and with 14.2million consumers visiting the grocer in the past three months.”
The German multinational retail chain now sits behind Sainsbury’s, Asda, and market leader Tesco
The rise in prominence by German-based Aldi coincides with acute inflation which hit a new high of 12.4% in August in the United Kingdom.
Milk with a price hike of 31% topped the list of the most affected food items. Others include butter 25%, and dog food 29%.
To cope with inflation, Kantar research found that households are looking for bargains when they buy food.
McKevitt stated that in what is a fiercely competitive sector, supermarkets are reacting to make sure they’re seen to acknowledge the challenges consumers are facing and offer the best value, in particular by expanding their own-label ranges.
Following a 1.9% increase in sales, Tesco now has a market share of 26.9%, while Asda has 14.1% of the market following a 2.2% increase in sales. 14.6 percent of the market is accounted for by Sainsbury’s.
Tesco, Sainsbury’s, and Asda all had their greatest sales performance since April 2021. Among the other major retailers, Iceland gained market share with sales that are 5.8% higher than in 2021.
Following a 1.9% increase in sales, Tesco now has a market share of 26.9%, while Asda has 14.1% of the market following a 2.2% increase in sales. 14.6 percent of the market is accounted for by Sainsbury’s.
Co-op increased sales by 2.7% while maintaining its market share of 6.5%. Waitrose has a market share of 4.7 percent, followed by Morrisons with 9.1 percent, and online grocer Ocado with 1.7 percent.
Due to pressure on its finances, Morrisons has struggled since being acquired by private equity firm Clayton, Dubilier & Rice.
Morrisons noted that it has not expanded any significant space in a while and claimed that market share is partially a consequence of new store openings.
“Customers don’t really care about market share statistics; they care about value, quality, provenance, and service and that is where our focus is going to remain,” a Morrisons spokesperson said.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE