Lidl is on the verge of surpassing Morrisons to become the UK’s fifth-largest supermarket, according to recent market data.
The German discount retailer has experienced significant growth, narrowing the gap with its British counterpart.
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Strong sales growth propels Lidl forward
Over the 12 weeks leading to 10 August 2025, Lidl’s sales increased by 10.7%, the highest among major UK grocers.
This surge boosted its market share to 8.3%, just 0.1 percentage points behind Morrisons at 8.4%. In contrast, Morrisons’ sales grew by only 0.9% during the same period.
Morrisons faces challenges amid changing consumer habits
Morrisons’ slower growth is attributed to various factors, including its debt-laden £7 billion acquisition by US private equity firm Clayton, Dubilier & Rice in 2021.
The company continues to face challenges in adapting to changing consumer preferences and increasing competition from discount retailers.
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By GlobalDataDiscounters gain market share as inflation eases
The latest data also indicates a slight easing in UK grocery inflation, which fell to 5% in August.
This reduction has made discount retailers like Lidl and Aldi more appealing to cost-conscious shoppers. Aldi’s market share now stands at 10.8%, up from 10.2% in January 2025.
As Lidl continues to close the gap with Morrisons, the UK grocery market is witnessing a shift towards discount retailers, reflecting broader consumer trends towards value and affordability.
