Aldi is set to near Asda’s market share by 2027 and could overtake it by 2028, GlobalData has revealed.

According to the latest Kantar market share figures, Asda’s share has fallen from 13.7% to 12.6% over the past year, however, Aldi’s share has also slipped from 10.2% to 10%.

The analytics firm said in order to maintain its position as the third biggest grocer, Asda must “redefine itself with a clear differentiation from discounters”.

GlobalData senior retail analyst Eleanor Simpson-Gould said: “The grocer must focus on its online capabilities this year to re-establish itself as a dominant player in the market and set itself apart from Aldi. Without immediate action, it risks dropping out of the coveted “big three” position even sooner.”

Earlier this week, Asda chair Lord Stuart Rose admitted he is “embarrassed” by the grocer’s performance and believes co-owner Mohsin Issa should step back from its day-to-day running.

At the start of the month, the supermarket posted a 5.3% like-for-like sales fall in its second quarter.

Simpson-Gould explained: “Such leadership disputes will do little to restore employee morale, already under such strain that colleagues have chosen to strike this year.

“Despite emergency plans to spend £30m to ensure staff is on checkouts at the weekend, stores are replenished during the day, and improvements are made to in-store cleanliness, Asda’s enhancements to the customer experience feel more like the bare minimum to persuade remaining customers not to shift to discounters.

“For Asda to truly resonate with consumers, it must provide a compelling reason for shoppers to spend money, an intensified focus on price and expanding its core range of grocery products will be crucial.”

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