Aldi is set to overtake Morrisons as the UK’s fourth biggest supermarket as the cost of living crisis continues to impact customers spending habits.
The German discounter increased its market share to 9.1%, from 8.2% this time last year. At the same time, Morrisons’ market share dropped from 10% to 9.3%.
READ MORE: Discounters unite: Lidl and Aldi second only to Tesco for UK market share
Overall supermarket inflation hit 11.6% last month, its highest level since 2008, according to the latest figures from Kantar.
“Products like butter, milk and poultry in particular are seeing some of the biggest jumps in prices,” Kantar head of retail and consumer insight Fraser McKevitt said.
As well as switching supermarkets, Kantar found people are increasingly turning to own-label value products in an effort to manage rising prices.
Kantar revealed that Aldi and Lidl gained a combined 1.8% of grocery sales in the last 12 weeks, representing a £2.3 billion annual shift in spending.
“In very short order we’ll be talking about a new Big Four: Tesco, Sainsbury’s, Asda and Aldi,” Shore Capital retail analyst Clive Black said.
He added: “We will be talking for the first time in many decades about the reconstitution of the top four.”
Aldi have been boosted by “unnatural footfall,” Black said, as the cost of living crisis prompts many shoppers to switch between grocery shops and keep costs down.
Households are now expected to spend an extra £533 a year, or £10.25 a week on their supermarket shop, putting more pressure on those already struggling with rising energy bills.
