Aldi’s lead over rival Morrisons widens after another slide in sales
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Aldi’s lead over rival Morrisons widens as sales of the private equity-owned grocer fall again
Morrisons has lost further ground to Aldi after another drop in sales.
In just the latest setback for the Bradford-based supermarket chain following its private equity takeover, industry figures from Kantar showed that revenue at Morrisons was £3 billion in the 12 weeks to February 19.
That was 0.9 percent less than a year earlier, giving the company a share of 9 percent of the British grocery market.
Sales downturn: Industry figures from Kantar showed that sales at Morrisons were £3 billion in the 12 weeks to February 19. In contrast, sales at Aldi increased by 26.7%
In contrast, sales at Aldi increased by 26.7 percent to £3.2 billion, giving it a market share of 9.4 percent.
A year ago, 9.8 percent of grocery spending was at Morrisons, while only 8 percent at Aldi.
But Morrisons was pushed from its place as the country’s fourth largest grocer by Aldi last year.
Shoppers have moved en masse from the traditional ‘Big Four’ grocers – once Tesco, Sainsbury’s, Asda and Morrisons – to cheaper Aldi and Lidl stores, as the cost of living tightened.
Lidl increased sales by 25.4 percent and captured 7.1 percent of the market.
Morrisons has struggled following its acquisition by New York-based private equity giant Clayton, Dubilier & Rice (CD&R) two years ago. Critics warned the takeover would lead to higher prices.
And according to The Grocer magazine, the average grocery basket in the supermarket has increased by 18 per cent to £75 over the past year.
Supermarkets have increased prices for a shopping basket by an average of 13.2 percent, with Morrisons’ rise even more.
Tesco – the largest supermarket with 27.3 percent of the grocery market – saw sales rise 6.6 percent in a 12-week period. Sainsbury’s rose 6.2 percent and Asda 5.9 percent.
Waitrose managed to grow again and increase sales by a meager 0.7 percent.