Aldi overtakes Morrisons to become fourth biggest supermarket

[dutchman]

Aldi held 9.2% of the UK grocery markets in the four weeks to 7 August while Morrisons held 9%



Aldi has overtaken Morrisons to become the UK’s fourth biggest supermarket, according to the latest data from Kantar.

The discounter’s market share leaped to 9.2% of the UK grocery market in the four weeks to 7 August, compared to Morrisons’ 9%, This is Money reports.

Aldi’s leapfrog of Morrisons has been expected for a number of months as the hordes of shoppers switch to doing their grocery shop with the discounters as the cost-of-living crisis puts budgets under pressure.

Aldi and rival discounter Lidl have been snatching market share away from the Big Four grocers with £2.3 billion of annual sales gained over the past year, according to Kantar.

Morrisons, which was bought by US private equity firm CD&R last year in a deal which loaded the retailer with a substantial debt pile, has been the hardest hit of the Big Four.

This time a year ago, Morrisons held a 10% share of the grocery market.

[dutchman]

Won't surprise anyone who shops at Morrisons

[dutchman]

Aldi joins the Big Four – will Lidl be next?



It’s finally happened. UK grocery’s Big Four, which just a decade ago seemed immovable, has a new player.

Aldi, which held less than 3% share of the market 10 years ago, has been threatening to overtake Morrisons’ market share for a while now but few expected the leapfrog to happen so soon.

However, over the past four weeks to 7 August, Aldi’s share hit 9.2% whilst Morrisons share slumped to 9%, according to Kantar data.

The phenomenal rise of Aldi – along with rival discounter Lidl – is well-documented and it’s no surprise that the cost-of-living crisis has provided another catalyst for growth.

Shoppers are understandably flocking to the discounters as budgets become more strained. It says a lot about the power of Aldi and Lidl that in a market where every grocer is screaming about low prices, they continue to thrive.

But what about Morrisons? Why has it lost share so rapidly?

Although Morrisons has other avenues for growth – convenience through its new acquisition of McColl’s and wholesale growth, including its tie-up with Amazon Fresh, to name a couple – but right now the broader grocery market is all about price.

And when it comes to price, Morrisons is whispering rather than screaming like its rivals.

Although it launched price cuts on hundreds of own-brand lines in late April, this move came later than rivals and Morrisons reputation on price had already been hit.

In fact, Trustpilot data analysed by Britsuperstore, found that Morrisons was the most complained about supermarket in regards to prices, deals and savings in 2022.

Britsuperstore found that more than 97% of Trustpilot reviews were classed as ‘negative’ in these areas.

Morrisons does have a unique opportunity to compete in the price war that is raging in grocery right now. It’s vertical integration model means that the grocer produces much of its own fresh produce.

Credit agency Fitch warned earlier this year that Morrisons price would likely rise due to the £5.6 billion debt pile it is burdened with since private equity firm CD&R bought the grocer last year.

With much debt to pay off, perhaps its owner is unprepared to take a margin cut right now.

However, the retailer needs to desperately reinstate its value credentials and quick, or risk losing further share.

Whilst Morrisons market share has plunged 1% to 9% over the past year, Lidl – who earlier this year leapfrogged The Co-op earlier this year to become the sixth biggest grocer – has seen its market share surge 0.9% to 7%. How long before it is biting at Morrisons ankles?

Add to that the raft of general discounters such as B&M, Home Bargains and Poundland that are pushing further and further into grocery and attracting cash-strapped shoppers to their stores each week.

What is clear is that the Big Four’s dominance is over. Shoppers have so much more choice over where to buy their groceries.

Unless supermarkets offer consumers what they want – which right now must include low prices – they will shop elsewhere.

[rebbonk]

I notice Tesco has removed a lot of food lines over the last week. No butternut squash, no bags of brown onions to mention just 2. If these removals are voluntary, they may well backfire on them.

[dutchman]

No checkouts manned at Morrisons again last night!

And if their prices keep rising I may just as well shop at One Stop which is a lot closer.

[dutchman]

Morrisons now 20% dearer than Iceland!

https://www.manchestereveningnews.co.uk ... t-25058280

[dutchman]

Aldi boss: Shoppers are switching in their droves



The boss of Aldi has said customers are switching to the discounter "in droves" as the cost of living crisis continues to hit struggling households.

Aldi has gained more than 1.5 million customers in 12 weeks, UK chief executive Giles Hurley told the BBC.

The discounter has recently overtaken Morrisons to become the fourth biggest supermarket in the UK.

Rival discounter Lidl has also been gaining ground as shoppers seek to lower their bills.

There has been an "unprecedented" change in consumer behaviour as inflation has soared, Mr Hurley said.

"We're seeing customers switch in their droves," he said. "Customers are prioritising value like never before and switching their shopping to Aldi."

Mr Hurley said shoppers from "all of the traditional full-price supermarkets" were coming to Aldi.

According to the retail research firm Kantar, sales at Aldi were up 19% for the 12 weeks to September compared with the same time last year. If it keeps growing at this rate, it will add up to an extra billion or so pounds in sales this year.

"We haven't seen growth rates like this since the last recession," said Mr Hurley, referring to the recession in 2008-2009.

Rival discounter Lidl is also seeing a rapid increase in sales.

Both businesses are still opening new stores, which is driving extra sales. Prices are also rising, which pushes up the value of sales.

But Mr Hurley insists that Aldi's popularity is broad-based.

"There's no doubt that some of our sales can be apportioned to new stores," he says.

"But the majority are coming from within the existing business as customers reappraise their search for value. It's not just about new shoppers, it's also about existing shoppers consolidating their shop at Aldi, and using Aldi as a first-stop shop."
Bargain hunting

Consumers are buying fewer big brands and putting cheaper own-label products in their shopping baskets instead.

According to retail research firm, Kantar, private label ranges now account for 51% of the market, compared to branded products.

Sales of the cheapest own label ranges are up by a third on last year.

More than 90% of products at Aldi are non-branded items.

Mr Hurley says the business is seeing growth across all categories, from a 20% increase in sales of its nappy range to a 29% rise in its premium Specially Selected range in the last three months.

[dutchman]

I was slightly puzzled as to why Morrisons were running down their Holyhead Road branch then I noticed that Aldi has finally started work on their nearby store:

New Aldi planned in Coventry

I can't see Morrisons surviving the opening of Aldi let alone a Lidl which is also planned on the other side of the road.

[rebbonk]

I remember when Morrisons announced that they were moving into the city, the other supermarkets were quite worried. Didn't last long, did it?

Morrisons are their own enemy. They should have stuck to what they did best, rather than try to ape Tesco and Asda. I don't rate their customer care, either!

[dutchman]

At this time of year Morrisons used to be packed with posh customers doing their once-a-year Xmas shop to save money. I haven't seen any this year?