Morrisons Faces Market Share Challenge as Sales Growth Slows

Morrisons has reported a slowdown in likeforlike sales growth for the latest quarter raising concerns that Lidl is set to overtake it as the United Kingdoms fifth largest supermarket. The grocer which is under the ownership of US private equity firm Clayton Dubilier and Rice posted a 3 per cent rise in likeforlike sales marking its eleventh consecutive quarter of growth. However this figure marks a decline from the previous quarters 3 point 9 per cent growth and follows a turbulent period as the company rebounded from a significant cyberattack.

Recent industry data reveals how Lidl is quickly closing the gap with Morrisons. In the twelve weeks to August tenth Lidl achieved sales growth of 10 point 7 per cent capturing an 8 point 3 per cent share of the market just a fraction below Morrisons at 8 point 4 per cent according to Kantar. Contrasting research from NIQ places Morrisons share at 8 point 5 per cent with Lidl slightly lower at 7 point 8 per cent underscoring the intensity of competition among UK supermarkets.

This deceleration in growth for Morrisons comes at a pivotal time as the supermarket industry in Britain remains fiercely competitive and margin pressures persist. Discount retailers such as Lidl and Aldi are continuing to capture increased traffic from shoppers seeking better value amidst a cost of living crisis. Supermarkets are under growing pressure to innovate pricing strategies and enhance customer experience to maintain loyalty and prevent further erosion of market share.

Morrisons performance in the coming months will be closely scrutinised as industry observers watch whether the retailer can reignite sales momentum or if the German discounter Lidl will overtake it in the ongoing battle for supermarket supremacy. Sustained investment in digital transformation supply chain resilience and customer engagement will likely play a decisive role in shaping the companys path forward.