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.

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.

Discounters 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.