Lidl overtakes struggling Morrisons to claim fifth-biggest supermarket

Lidl has overtaken Morrisons to become Britain’s fifth-largest supermarket for the first time.The German discounter’s market share hit a record 8.6pc in the 12 weeks to May 17, pushing it ahead of Morrisons at 8.3pc, according to figures from Worldpanel by Numerator.It is a remarkable rise for the German chain, which had just 1.4pc market share 25 years ago. However, it highlights the ongoing struggles at Morrisons.Once a member of the UK’s “big four” supermarkets, which include Asda, Tesco and Sainsbury’s, Morrisons’ market share has fallen from 10pc as recently as 2020.Since then, Lidl and fellow discounter Aldi have chipped away at Morrisons’ customer base as households hunt for cheaper groceries. Aldi overtook Morrisons to become the UK’s fourth-largest supermarket in 2022.The loss of fifth place comes as Morrisons struggles with a £3bn debt following its £10bn takeover by private equity firm Clayton, Dubilier & Rice in 2021.Since then, executives under Rami Baitiéh, Morrisons’ chief executive, have been forced to launch a turnaround programme of store closures, job cuts and asset reviews. It posted losses of £381m in 2025 after being hit by a £281m interest bill.Last week, Morrisons announced plans to close around 100 loss-making convenience stores. It also cut head-office roles and shuttered many cafés, fish counters, and in-store butchers earlier this year.At the same time, Morrisons has been attempting to unlock value from its manufacturing arm, Myton, one of Britain’s largest food producers.The British supermarket has been seeking contracts with rival retailers and hospitality groups as it looks to boost earnings from the division, The Telegraph reported last week.The report also showed Tesco extended its lead, with its market share rising to 28.2pc, while Sainsbury’s reached 15.2pc. Asda remained Britain’s fourth-largest grocer at 11.5pc, ahead of Aldi at 10.8pc.Across UK supermarkets, grocery prices climbed by 3.1pc in the four weeks to May 17, the slowest pace of inflation since November last year, according to Worldpanel’s figures.Promotions accounted for 30.3pc of grocery sales, up from 28.4pc a year earlier. Spending on discounted products is jumping by 9.5pc.A chilly start to May cut demand for summer staples, with sun cream sales volumes down 28pc year on year.A Morrisons spokesman said: “Our Worldpanel market share has been stable since the beginning of 2025, and Morrisons continues to serve over 10 million customers a week.“We have maintained our share while not opening new supermarkets, unlike the discounters who continue to add significant new space.“Not all of our growth in convenience is captured in the Worldpanel survey, and it therefore underestimates our true market share position.”