Lidl poised to overtake struggling Morrisons as UK's fifth largest supermarket
More than half a million new customers flocked to the discount retailer's 960 stores amid concerns over higher grocery bills.
Lidl is now hot on the heels of Morrisons after its slice of the market hit 8.3 per cent over the three months to July 13, according to industry research group Worldpanel.
Lidl sales over the period were 11.1 per cent higher than a year earlier when its share of the market was 7.8 per cent.
The surge saw it further narrow the gap with rival Morrisons, whose market share has fallen from 8.7 per cent to 8.4 per cent in the past year, the report showed.
Morrisons has already lost its position as the fourth-biggest grocer in Britain to Aldi.
Nearly two thirds of households told Worldpanel they are very concerned about the cost of their grocery shopping.
Price increases on key goods including cocoa and beef have ramped up pressure on supermarket chains locked in a bitter battle to retain shoppers.
Morrisons' slip comes as boss Rami Baitieh attempts to engineer a recovery at the private-equity owned group.
Last month, he said it had 'bounced back' after its technology supplier Blue Yonder was hit by hackers in November, throwing its stock systems into disarray.
Morrisons has lost sales and market share to cheaper rivals since its takeover by Clayton, Dubilier & Rice (CD&R) in a debt-fuelled £7billion deal in October 2021.
After Labour piled on costs for retailers at the Budget last year, Morrisons cut more than 350 jobs across its cafes, convenience stores, florists and fresh food counters, in March.
The figures also underscored the woes facing Britain's third-largest grocer, Asda. The firm, also owned by private equity, saw sales plunge 3 per cent from £4.4billion to £4.25billion over the past three months, while its market share fell to 11.8 per cent.
The dire performance came after executive chairman Allan Leighton insisted the 'green shoots' of recovery are appearing as it slashes the price of thousands of products and improves stock levels.
A spokesman for Lidl said the record market share was 'a clear signal that shoppers are voting with their feet.
'This milestone reflects our long-standing position as the fastest-growing bricks-and-mortar supermarket in the UK, as well as our commitment to offering high quality, affordable produce – which is why we've attracted more than half a million new customers.'
Meanwhile, Tesco improved its share to 28.3 per cent as sales grew by 7.1 per cent, the fastest rate since December 2023.
And Britain's number two supermarket Sainsbury's saw sales climb by 5.3 per cent, putting its market share at 15.1 per cent.
Tesco boss Ken Murphy has warned that Tesco was ready to take a £400million hit to profits this year as the competition hots up.
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