In a bold move to revitalise its market position, Morrisons has announced it will launch a middle aisle discount feature, directly inspired by the successful strategies of German rivals Aldi and Lidl. This initiative comes alongside a further 2,500 price cuts implemented at the start of January 2026, as the supermarket chain battles to regain its footing in the highly competitive UK grocery sector.
Financial Pressures and Competitive Shifts
Morrisons, the UK's fifth largest grocery franchise, reported pre-tax losses of £381 million for the year to October 2025. While this represents an improvement from the £414 million loss in the 2023-24 period, the company continues to face significant challenges. It lost its title as Britain's fourth largest grocer to Aldi in September 2022, and industry analysts predict it may soon be overtaken by Lidl in the supermarket rankings.
Embracing the Middle Aisle Model
The new strategy involves selling items in a central aisle at approximately half their usual price, mirroring the limited-time deals offered by Aldi and Lidl. These promotions, which typically run for two to three weeks, can include a diverse range of non-grocery products such as kitchen supplies, bicycles, towels, and luggage.
Rami Baitiéh, CEO of Morrisons, has articulated a vision to transform the supermarket into a comprehensive one-stop shop, enabling customers to fulfil all their necessities without visiting multiple stores. This represents a notable shift from Morrisons' traditional emphasis on fresh British produce, formal counters, and bakeries.
Proven Profitability and Strategic Hiring
Paul Foley, a former Aldi UK chief, highlighted to the Telegraph that the middle aisle approach has proven "incredibly profitable" for discount retailers. He noted that these aisles can account for 10 to 15 per cent of overall sales and are often more profitable on a percentage basis than the grocery sections of the business.
To support this ambitious push, Morrisons has appointed Simon Buckley, a former B&M executive, as its new General Merchandise Trading Director. The supermarket aims to double its sales in the coming years through this focused strategy.
Overcoming Initial Hurdles
Morrisons initially faced supply issues and safety standard challenges when it relaunched its "When It's Gone, It's Gone" range in November. The company struggled to match the low prices of Aldi and Lidl, which benefit from bulk purchasing power. However, Morrisons management insists they have successfully turned the situation around, citing positive results and a renewed commitment to the strategy.
Encouraging Early Results
The middle aisle initiative has already shown promising signs, with general merchandise sales increasing by 10 per cent over the Christmas period. Mr Baitiéh described this as a "stand-out achievement" and noted that the company enjoyed a good Christmas in 2025, providing a solid foundation for the first quarter of 2026.
"As we enter 2026, the grocery market remains competitive and we are committed to our focus on delivering good value and keeping prices low for customers," stated Mr Baitiéh, reinforcing the announcement of the additional 2,500 price cuts.
This strategic pivot underscores Morrisons' determination to adapt to evolving consumer preferences and intense market competition, leveraging proven tactics from its most successful rivals to secure its future in the British retail landscape.
