Morrisons could lose its place as the UK’s fifth-largest supermarket when new industry figures are published this week.
The Bradford-based grocer has already been pushed out of the top four by discounter Aldi and is now close to being overtaken by Lidl.
Tesco, Sainsbury’s, Asda, and Morrisons traditionally formed the big four, but the rise of German-owned discount brands has transformed the sector, offering alternatives for cost-conscious shoppers facing rising bills.
Industry research group Worldpanel will release the latest grocery market figures tomorrow, which could see Lidl claim the number five spot.
Morrisons’ boss, Rami Baitieh, has been attempting to revive the business after a challenging period following its 2021 private equity-backed takeover.
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Earlier this months, news emerged that Morrisons has cut of over 3,600 jobs, despite posting a statutory pre-tax profit of £2.26bn for the year to 29 October 2024, compared to a £1.5bn loss the prior year.
This swing was largely driven by a £2.6bn profit on the disposal of 337 petrol forecourts to Motor Fuel Group (MFG). Losses from continuing operations halved to £538m from £1.09bn the previous year.
The headcount reduction reflects a combination of factors, including the sale of petrol stations, closure and restructuring of some manufacturing sites, and in-store productivity changes, which Morrisons says were largely achieved through natural wastage.
Revenue declined from £18.3bn to £17bn despite like-for-like sales rising 3.9% and total sales growing 4.2% to £3.9bn in Q2 of the current financial year. Underlying EBITDA increased 7.2% in the first half to £344m.
CEO Baitieh said: “Against a challenging macro environment, with inflation driving subdued consumer sentiment, value remains at the forefront of customers’ minds. Throughout the first half, we’ve focused on price, promotions, and meaningful loyalty rewards to help our customers.”
Morrisons also closed over 50 cafés earlier this year, putting a further 365 jobs at risk. Other UK grocers are also streamlining operations, with Aldi planning up to 350 head office cuts, Sainsbury’s announcing 3,000 job losses and café closures, and Tesco making 400 redundancies to simplify operations.
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