Lidl has overtaken Morrisons to become Great Britain’s fifth largest grocer.

The German-owned retailer increased sales by 8.8 per cent year on year over the 12 weeks to 17 May, according to figures from Worldpanel by Numerator.

The rise made Lidl the fastest-growing store-based grocer over the period and pushed its market share to a record 8.6 per cent.

Morrisons, meanwhile, saw sales rise 1.3 per cent year on year, giving it an 8.3 per cent share of the market.

The milestone marks a major shift in the UK grocery sector. Twenty-five years ago, Lidl accounted for just 1.4 per cent of the market, behind former supermarket names including Safeway, Somerfield and Kwik Save.

Since launching in the UK in 1994, Lidl GB has expanded to 1,000 stores and 13 distribution centres, employing around 35,000 people across England, Scotland and Wales.

In the year to February 2025, Lidl GB sales rose 8.3 per cent to £11.7bn, while profits more than doubled to £156.8m.

The discounter has also committed to opening 50 UK stores over the coming year and investing more than £600m in its expansion.

Lidl now sits behind Aldi, which remains the UK’s fourth largest supermarket. Aldi is less than one percentage point behind Asda, where sales remain under pressure despite efforts to turn around the business.

Lidl GB chief executive Ryan McDonnell said: “Becoming Great Britain’s fifth largest supermarket is a significant milestone and a clear indication of the momentum we have built.

“As customer expectations shift, households are looking for value they can rely on without compromising on quality, and we remain laser-focused on delivering exactly that.

“Achieving this is a testament to the dedication of our colleagues, whose hard work delivers for our customers every single day.”

Morrisons challenged the Worldpanel figures, arguing that they do not include convenience store sales. The Bradford-based grocer operates hundreds of convenience stores, while Lidl has none.

A Morrisons spokesperson 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.”

The continued growth of Lidl comes as households seek out promotions and cheaper alternatives to offset pressure from food and energy bills.

Worldpanel said like-for-like grocery price inflation rose 3.1 per cent in the four weeks to 17 May, marking the slowest rate since December 2024.

However, shoppers are still relying heavily on promotions, with spending on discounted items rising 9.5 per cent year on year. Full-price spending was almost flat, increasing by just 0.1 per cent.

Worldpanel head of retail and consumer insight Fraser McKevitt said: “The easing in the rate of inflation is welcome news for shoppers who have been grappling with warnings of a hike in food prices due to the impact of the war in the Middle East.”