Aldi Closing In on Asda in Race to Become UK’s Third-Biggest Supermarket

Aldi is rapidly closing the gap on Asda as it aims to become the UK’s third-largest supermarket, new industry data reveals. The discount retailer saw its market share rise to 10.9%, with sales up 6.5% in the four weeks to 15 June, according to Kantar. Meanwhile, Asda’s market share fell to 11.9%, putting it firmly in Aldi’s sights as the German chain accelerates its UK expansion plans.

Aldi’s Rapid Growth vs. Asda’s Struggles

• Aldi’s sales surge (+6.5%) vs. Asda’s decline (-1.7%)

• Lidl, Aldi’s discount rival, grew fastest at 11.2%, hitting 8.1% market share

• Tesco remains UK’s top supermarket (28.1% share) with 7% sales growth

• Sainsbury’s (15.2%) and Morrisons (8.4%) also saw gains

Aldi’s Aggressive Expansion Plans

Aldi is investing £1.3 billion in the UK, planning to open 40 new stores in 2024 and hire 1,000 additional staff. However, the retailer has criticised planning delays and accused competitors of filing “spurious objections” to block new stores.

While Asda remains slightly ahead in total grocery sales, Aldi is now outperforming in food and drink. Asda, owned by private equity firm TDR, has struggled since its £6.8bn leveraged buyout in 2021, with £3.8bn net debt and customer complaints over stock shortages and poor service.

UK Grocery Inflation Hits Highest Level Since 2023

• Food prices up 4.7% year-on-year (highest since February 2023)

• Shoppers making more trips (490m in a month) but spending less per visit (£23.89, down 3p)

• Own-label sales (+4.2%) outpacing branded goods as consumers seek savings

• Promotions now account for 28.8% of spending

Which Supermarkets Are Winning?

Fraser McKevitt (Kantar): “Shoppers remain price-conscious, with own-label goods and promotions driving growth. The battle for third place between Aldi and Asda will be one to watch.”