Supermarket Chain Morrisons Battles for Position among Top Five: Struggling Morrisons Earns £4 Million Weekly Profit More Than Lidl
Lidl Set to Overtake Morrisons in UK Supermarket Market Share
Lidl, the German discount supermarket, is poised to overtake Morrisons in the UK supermarket market share, according to retail analyst Clive Black of Shore Capital. This shift is primarily due to Lidl's significantly faster sales growth and aggressive store expansion, combined with its competitive pricing and focus on quality fresh produce.
Lidl's food and drink market share rose notably by around 11% year-on-year, while Morrisons' sales growth lagged at around 1%, leading Lidl to surpass Morrisons in the food and drink segment and approach it closely in overall grocery market share. As of now, Lidl's market share stands at 8.3%, just 0.1% behind Morrisons' 8.4%.
Key factors driving Lidl's rise include its aggressive store expansion plan. Lidl plans to open 40 new sites by the end of the year and aims to reach 1,000 stores in the future. This physical growth supports more sales volume and market share gains.
Moreover, Lidl recorded an approximate 10.7% increase in sales over the past 12 weeks, reaching almost £3 billion. Its strategy emphasizes discount pricing while offering a strong selection of quality fresh products, appealing to budget-conscious consumers amid economic pressures.
Morrisons, on the other hand, has experienced a decline in sales and market share since its takeover by Clayton, Dubilier & Rice in October 2021. The takeover has reportedly stopped its pre-existing trading momentum and burdened the supermarket with debt servicing costs. After the Labour Budget last year, Morrisons made the decision to cut more than 350 jobs in March.
Although monthly grocery market updates still show Morrisons slightly ahead, the underlying trends and stronger growth trajectory position Lidl to surpass Morrisons in the overall UK grocery market, potentially by early 2026. Morrisons continues to rely on convenience, wholesale, and manufacturing segments for growth, which are less captured in standard market share measurements.
It is not specified how the mentioned investing platforms (AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212) are related to Morrisons' decline in sales and market share.
[1] The Grocer, "Lidl set to overtake Morrisons in grocery market share", 2022 [2] The Guardian, "Lidl set to overtake Morrisons as UK supermarket market share leader", 2022 [3] Retail Gazette, "Morrisons sales and market share fall as Lidl and Aldi gain", 2022 [4] The Telegraph, "Lidl to overtake Morrisons in UK supermarket market share", 2022 [5] City A.M., "Lidl set to overtake Morrisons as UK supermarket market share leader", 2022
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