Morrisons reported a modest increase in its market share for the first time in over five years, marking a potential turning point after a prolonged period of financial challenges. According to the latest data from Worldpanel by Numerator, the supermarket's share of the UK grocery market inched up by 0.1 percentage points year-on-year to 8.5 percent during the 12 weeks ending July 12. Over the same period, sales rose 3.5 percent to reach £3.1 billion.

This growth follows a lengthy stretch of market share stagnation and declining profits for Morrisons, which has struggled since its acquisition by private equity firm Clayton Dubilier & Rice through a highly leveraged buyout in 2021. The company has faced ongoing pressures from significant debt exceeding £3 billion, prompting cost-cutting initiatives including the closure of 100 convenience stores announced in May and plans to sell several pharmacies revealed earlier this year. Recently, reports indicated Morrisons is in discussions over a £600 million property deal with a U.S. investment group as part of its broader efforts to stabilize its finances.

Despite this small gain, Morrisons remains behind Lidl, which recorded a 0.5 percentage point increase to 8.8 percent—the largest growth among major British supermarkets during the period. Lidl surpassed Morrisons’ market share for the first time in May, signaling intensified competition from the German discounter.

Other major grocers experienced mixed results. Tesco, the UK’s largest supermarket chain, and Asda, also owned by private equity, both saw declines in their market share. In contrast, the Co-operative Group increased its share by 0.2 points to 5.4 percent amid recovery efforts following last year’s cyberattack. Waitrose and Iceland reported stable market shares compared to the previous year.

Overall, take-home grocery sales grew by 3.3 percent over the four weeks to July 12, buoyed by a sharp rise in beer and cider purchases linked to the World Cup. Grocery price inflation continued to ease, reaching 2.6 percent in the most recent four-week period—its lowest level in more than 18 months, down from 3 percent in the prior month.

However, Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, emphasized that the slower inflation rate does not fully capture the financial burden consumers face. He noted that the average household spent £5,530 on groceries over the year ending July, an increase of £156 compared with the previous 12 months, reflecting the cumulative impact of sustained price rises on shoppers' budgets.