Aldi replaces Morrisons as UK’s fourth biggest supermarket

In the UK, most people have a favourite supermarket and, more often than not, it’s Tesco, Asda, Sainsburys or Morrisons.

There has been little movement in the supermarket landscape for years with the biggest players holding a combined market share of 7.4% in 2007 and 73.2% in 2015. 

However, the cost of living crisis is shaking up consumer shopping habits in a trend that has seen budget supermarkets bite at the heels of the Big Four and just last month, Aldi rose to fourth place when its market share soared to 9.2% (it was less than 3% a decade ago) and Morrisons’ slumped to 9%. 

In this article, we’ll explain why consumers are switching to budget supermarkets and whether this is a trend that will continue as the cost of living crisis continues. 

Why choose Creditfix?

• Write off unsecured debts over £6,000
• Stop interest and charges soaring
• Reduced payments from £110 per month

Trustpilot

Check if you qualify

What is the Big Four?

The Big Four is the name given to the four largest supermarkets in the UK which, until recently, have always been Tesco, Asda, Sainsburys and Morrisons.

However, in 2015, the market was disrupted when budget supermarkets started cropping up all over the country and it didn’t take long for cash-strapped consumers to take notice in a bid to keep costs down.

This has led to a battle for market share as supermarkets scramble to introduce the best cost-cutting initiatives and customers continue to tighten their purse strings amidst the ongoing cost of living crisis. 

How are consumer shopping habits changing?

The fallout of the COVID-19 pandemic and the cost of living crisis has sent the price of everyday items soaring with food, fuel and energy amongst the hardest hit.

But with inflation at its highest rate in over 40 years and annual energy bills expected to hit £3,549 in October, households have turned to budget supermarkets in a bid to slash their food bills and get more bang for their buck. 

Aldi, in particular, has experienced rapid growth due to its focus on selling high quality items at low prices which allows shoppers to feed their families healthy and nutritious food for less. 

In a recent survey into the most talked about supermarkets amongst parents, Aldi and Lidl also came out on top with 52.52% and 23.57% of the vote respectively. 

How has Aldi’s market share increased? 

When Aldi opened its first UK store in 1990, Tesco and Sainsburys were confident they had nothing to worry about and they were right with the supermarket’s share of the market remaining firmly below 3.1% for the first 20 years. 

But in just a few short years, shoppers started welcoming budget supermarkets with open arms and, by 2017, Aldi had climbed the ranks to become the UK’s fifth largest retailer.

This has been dubbed the ‘Aldi Effect’ with the budget supermarket’s no-frills approach to shopping resonating with shoppers during the global economic crisis, COVID-19 pandemic and ongoing cost of living crisis. 

Will Lidl join the Big Four? 

The news of Aldi replacing Morrisons as the UK’s fourth biggest supermarket might have come as a shock for some but with Lidl hot on its heels, could 2022 be the year both budget supermarkets break into the Big Four? According to former Lidl UK boss Ronny Gottschlich, Aldi and Lidl are both on track to overtake Tesco by 2027 at the latest.

Lidl was voted the UK’s cheapest supermarket this year and with 36% of shoppers switching to a budget supermarket and 34% swapping big-name brands for own-name brands, the cost of living crisis could be responsible for the biggest shake up to the supermarket landscape in decades. 

The rise of other budget retailers, like B&M, Home Bargains and Poundland are also pushing some of the market’s biggest players out of the picture and with more brands adding groceries to their product ranges, shoppers have more choice than ever before.