Lidl has overtaken Morrisons to become Britain's fifth largest supermarket, according to latest figures from Worldpanel. The discount retailer now holds an 8.6% market share in the 12 weeks up to May 17, up from 8.1% a year earlier. Morrisons saw its share drop from 8.4% to 8.3% in the same period.
Sales Growth and Market Dynamics
Lidl sales were up 8.8% year on year, while Morrisons sales rose only 1.3%. Tesco remains the largest supermarket in Britain with a market share of 28.2%, followed by Sainsbury’s (15.2%), Asda (11.5%), and Aldi (10.8%). Tesco's share rose from 27.9%, Sainsbury's from 15.1%, while Asda dropped from 12.1% and Aldi from 11%.
Fastest Growing Grocer
Ocado continued to be the fastest growing grocer with sales up by 10.2% year on year, although this is the slowest recorded rate of growth since July 2024.
Ryan McDonnell, CEO of Lidl GB, said: “Becoming Great Britain’s fifth-largest supermarket is a significant milestone and a clear indication of the momentum we have built. As customer expectations shift, households are looking for value they can rely on without compromising on quality, and we remain laser-focused on delivering exactly that.”
Grocery Price Inflation
Worldpanel figures also revealed grocery price inflation slowed again this month as consumers brace for the fallout from the Middle East crisis. Supermarket prices were 3.1% higher than a year ago in May, down from April’s 3.8% and March’s 4.3%. Shoppers made the most of promotions to keep costs down, with 30.3% of sales involving a deal last month, up from 28.4% a year ago. Spending on full price items was virtually flat, growing by only 0.1%.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: “The easing in the rate of inflation is welcome news for shoppers who have been grappling with warnings of a hike in food prices due to the impact of the war in the Middle East.”
Government Tariff Suspension
The figures come days after the Government announced a plan to suspend tariffs on some food imports as part of wider efforts to combat rising prices. The full list of products is yet to be published but is expected to include biscuits, chocolate, dried fruit and nuts.
