Morrisons market share falls below Lidl as shoppers turn to own brand items

Morrisons’ market share has fallen below Lidl in recent weeks, new sales data has revealed.

Figures released by NIQ, the new name of NielsenIQ, show the Bradford-based supermarket chain had an eight per cent share of the market in the four weeks to May 20 this year – down from 8.8 per cent at the same point in 2022.

In contrast, Lidl has climbed to a 9.2 per cent market share, up from 8.6 per cent at the same point last year.

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Both supermarkets remain behind Tesco (26.3 per cent market share), Sainsbury’s (13.7 per cent), Asda (12.4 per cent) and Aldi (12 per cent).

The unveiling of the new Morrisons More Card loyalty programme, giving shoppers the opportunity to access lower prices through More Card Exclusives and personalised offers, Newcastle. As well as the new loyalty scheme, a new advertising and brand campaign launches today which revives the "More Reasons To Shop At Morrisons", which was introduced in Sir Ken Morrison's time, last being used in 2006. Picture: Owen Humphreys/PA Wire.The unveiling of the new Morrisons More Card loyalty programme, giving shoppers the opportunity to access lower prices through More Card Exclusives and personalised offers, Newcastle. As well as the new loyalty scheme, a new advertising and brand campaign launches today which revives the "More Reasons To Shop At Morrisons", which was introduced in Sir Ken Morrison's time, last being used in 2006. Picture: Owen Humphreys/PA Wire.
The unveiling of the new Morrisons More Card loyalty programme, giving shoppers the opportunity to access lower prices through More Card Exclusives and personalised offers, Newcastle. As well as the new loyalty scheme, a new advertising and brand campaign launches today which revives the "More Reasons To Shop At Morrisons", which was introduced in Sir Ken Morrison's time, last being used in 2006. Picture: Owen Humphreys/PA Wire.

Across the sector, UK supermarkets experienced a 12.3 per cent uplift in Total Till sales – with the biggest increase coming during the week of the coronation as shoppers bought extra items.

The highest performing categories in terms of value sales over the four week period were bakery, confectionery and dairy. There was also a lift in discretionary spend which helped to deliver positive volume sales growth in beers, wines and spirits and crisps and snacks.

Moreover, NIQ data shows that over the four week period, there was a 3.8 per cent increase in shopping occasions - across all channels - with a 4.9 per cent increase in visits to stores, as shoppers continued to shop around for the cheapest prices.

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As well as shopping around, consumers have also been increasingly seeking out cheaper own brand products. Sales of such items have increased by 14.1 per cent, compared to seven per cent for branded goods.

Mike Watkins, NIQ’s UK Head of Retailer and Business Insight, said: “Inflation has been a significant drag on shopper spend, so this year, incremental sales are reliant on a short-term boost from well-activated events rather than regular promotional activity.

"With 27 per cent of households saying that they buy extra or special items to celebrate an event or occasion, this will have helped many prioritise spending for the coronation in early May."

He added: "With warmer weather coming up towards the end of May, we can expect to see a further lift to sales in June, particularly at convenience stores where 30 per cent of households now say they shop at once a week or more.

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"The advantage for retailers is that shopper mobility tends to increase over the summer, and with 82 per cent of consumers buying food on the go, this is another reason to visit a store.

"While some parts of the hospitality industry are facing headwinds, there remains a strong consumer demand for dining at home, and shoppers are indulging themselves through quick grocery delivery and enjoying meals and snacks from a diverse range of rapid delivery platforms like Just Eat, Uber Eats, or Deliveroo.

"Many shoppers are still looking for a special treat now and again, despite the challenges of inflation.”

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