Aldi overtakes Asda as UK’s third biggest food and drinks retailer

Aldi has made a big move in the UK supermarket world—at least for a month. According to Kantar data reported by The Telegraph, Aldi overtook Asda to become the third biggest food and drink retailer in the UK during the period from 23 February to 23 March 2025.

A Tight Race for Market Share

During that month-long period, Aldi’s food and drink sales were higher than Asda’s, pushing the discount retailer temporarily ahead. Over the full 12 weeks leading to 23 March, Aldi held a 10.6% share of all food and drink sales in UK supermarkets, narrowly ahead of Asda’s 10.4%.

While Kantar did not officially release these food-and-drink-specific figures (they are shared privately with supermarkets), Asda responded to the news by reinforcing its commitment to delivering value. The retailer pointed to its relaunched ‘Rollback’ price campaign as proof, noting it has reduced prices on about a third of its range since the end of January.

Total Grocery Market Still Favors Asda—for Now

When it comes to the overall grocery sector—including not just food and drink, but also items like toiletries, alcohol, cleaning supplies, and pet food—Asda still holds a slight lead. In the 12 weeks to 23 March, Asda had a 12.5% share of the grocery market, compared to Aldi’s 11%. However, it’s worth noting this was the first time Aldi hit an 11% market share, with sales rising 5.6% year-on-year. That marks Aldi’s fastest growth rate since January 2024.

In contrast, Asda saw its overall grocery sales fall 5.6% during the same period—a worrying trend for the traditional supermarket chain.

Asda Pushes Back Against Selective Data

Asda has questioned the validity of the specific data being cited, saying that the private Kantar figures leave out important product categories like alcoholic drinks, laundry products, toiletries, and more. According to an Asda spokesperson, the most widely followed data shows the retailer still holding onto its position as the UK’s third-largest supermarket overall.

Challenges and Change at Asda

Asda has been under pressure for several months, facing consistent year-on-year sales declines and laying off hundreds of employees—475 head office jobs were cut in November, and another 200 were announced earlier this month.

To turn things around, Asda’s leadership is focusing on value. Executive chairman Allan Leighton, who returned to the company in November 2024, is placing Asda’s long-standing focus on price at the center of its revival strategy.

Part of this plan includes the major relaunch of the Rollback campaign in January, which replaced the previous Aldi and Lidl price match scheme. Asda’s goal is to lower prices across its full range by the end of 2026 under the banner of the traditional ‘Asda Price’ that many long-time customers remember.

David Hills, Asda’s Chief Customer Officer, described the move as a return to the brand’s roots. “We’re rolling back to the Asda Price that is loved by families. It’s a long-term investment to make us the cheapest full-service supermarket again.”

Hills is set to leave his position later this year, and Asda has not yet named a successor. However, former Aldi marketing leader Adam Zavalis is currently vice-president of marketing and could play a bigger role in shaping Asda’s future brand direction.

Discounters Continue to Grow

Meanwhile, discounters like Aldi and Lidl are continuing to gain ground. Aldi first entered the ‘Big Four’ of UK supermarkets in 2022 by surpassing Morrisons, and it’s held onto the fourth-place spot ever since. Lidl, still in fifth place, isn’t far behind Morrisons now. Lidl has a 7.8% share compared to Morrisons’ 8.5%, and grew its sales by a strong 9.1% in the 12-week period. The only retailer to grow faster was Ocado, with 11.2% growth.

What’s Next?

The UK grocery market is more competitive than ever, with discounters leading the charge through strong price offerings and rapid growth. Asda’s ability to adapt and deliver value will be key in maintaining its spot among the top retailers. With Aldi growing fast and Lidl not far behind, the race for market share is far from over.