Lidl has overtaken Morrisons to become the UK's fifth largest grocer, driven by households seeking to keep their weekly bills down. The German-owned discounter increased its sales by 8.8% year on year, making it the fastest-growing store-based grocer, and achieved a record high market share of 8.6% over the 12 weeks to 17 May, according to data from market analysts Worldpanel by Numerator. In contrast, Morrisons, based in Bradford, saw its market share fall to 8.3% as its sales grew only 1.3% compared with a year earlier.
Lidl's Growth Trajectory
Twenty-five years ago, Lidl accounted for just 1.4% of the grocery market, trailing behind now-defunct names such as Safeway, Somerfield, and Kwik Save. Since then, the retailer has rapidly expanded its store network and broadened its appeal, evolving into a weekly shopping destination for many British households. Lidl first entered the UK market in 1994 and now operates 1,000 stores and 13 distribution centres, employing 35,000 people across England, Scotland, and Wales. In the year to February 2025, Lidl GB's sales rose 8.3% to £11.7 billion, while profits more than doubled to £156.8 million. In April, Lidl pledged to open 50 new UK stores in the coming year and invest over £600 million in expansion.
Market Position and Competition
Lidl now trails behind fellow German discounter Aldi, which holds the UK's fourth largest supermarket position. Aldi is less than one percentage point behind struggling Asda, where sales continue to decline despite turnaround efforts. Both Aldi and Lidl have grown rapidly, partly due to poor performance at Asda and Morrisons since their debt-fuelled private equity takeovers. However, Aldi's growth has slowed recently as Tesco and Sainsbury's, the UK's first and second largest chains respectively, have fought back with loyalty schemes and price-matching ranges.
Ryan McDonnell, chief executive of Lidl GB, commented: "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. Achieving this is a testament to the dedication of our colleagues, whose hard work delivers for our customers every single day."
Impact of Inflation and Promotions
The rise of discounters comes as households turn to budget chains and seek promotions to offset inflation on food and energy bills. Like-for-like grocery prices rose 3.1% in the four weeks to 17 May, but this marked the slowest pace of inflation since December 2024, as supermarkets offered discounts to tempt spending, Worldpanel reported. Shoppers relied on promotions to keep costs down, with spending on promoted items up 9.5% year on year, while full-price spending 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."
