Lidl has overtaken Morrisons to become the fifth largest supermarket in the United Kingdom, following an 8.8 percent increase in sales compared to the previous year. The German-owned discount retailer now commands an 8.6 percent share of the grocery market, according to data from Worldpanel by Numerator. Lidl has been the fastest-growing physical grocery retailer in the UK for 35 consecutive months.
Loyalty Programme Drives Growth
While some supermarkets have relied on price discounting to compete with Lidl and its larger rival Aldi, the Lidl Plus loyalty app has been instrumental in retaining customers. The app reportedly accounts for half of Lidl's growth over the past year.
Market Leaders and Laggards
Tesco remains the dominant player with a 28.2 percent market share, followed by Sainsbury's at 15.2 percent. Among the top eight supermarkets, Asda was the only one to see a year-on-year decline in takings, with a 3 percent drop. Its market share fell from 12.1 percent to 11.5 percent. Aldi sits between Asda and Lidl, while Co-op (5.1 percent), Waitrose (4.5 percent), Iceland (2.2 percent), and Ocado (2.1 percent) round out the list.
Online and Specialty Retailers
Ocado, the online grocer, grew faster at 10.2 percent year on year but holds only a 2.1 percent market share. Marks & Spencer also reported a 9.3 percent increase in grocery sales, but Worldpanel does not classify M&S as a grocer due to its clothing and homeware offerings.
Inflation and Future Outlook
Grocery price inflation for the four weeks to May 2026 stood at 3.1 percent, the lowest since December 2024. However, the Food and Drink Federation has warned of significantly higher costs later in the year. Fraser McKevitt, head of retail and consumer insight at Worldpanel, commented: “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.”
Ryan McDonnell, chief executive 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.” He added that the achievement is a testament to the dedication of Lidl colleagues.
