Lidl closes gap on Morrisons in UK grocery market

Discount retailer Lidl closes in on Morrisons as shoppers seek cheaper groceries amid rising living costs.

Lidl Tightens its Grip on UK Grocery Competition

Lidl posted a 10.7% sales rise in the three months to August 11, lifting its market share to 8.3% and narrowing the gap with Morrisons at 8.4%. Tesco remains the leading chain with a 28.4% share, while Sainsbury’s rose to 15% as the market steadies. Aldi sits at 10.8%, keeping pressure on the traditional four and signaling a shifting competitive landscape. The figures come as inflation cools slightly, with grocery inflation around 5% in August, down 0.2 percentage points from July.

The climb by Lidl and the momentum across discount chains reflect a broader shift in consumer behavior as households recalibrate spending. Retailers are expanding store networks to capture a growing share of budget-conscious shoppers, while premium own-label products show surprising strength. The dynamic could alter investment plans and strategy across the sector, especially for the long-standing big four.

Highlights

The grocery map is shifting as shoppers chase value and quality in tandem.