Morrisons is set to introduce its own version of discount deals to compete with budget rivals Aldi and Lidl. The supermarket chain aims to challenge its German competitors in the midst of a fierce price competition due to the ongoing financial pressures faced by consumers.
Amidst rising grocery costs, many households have turned to discount retailers for more affordable food, household items, and exclusive “special buy” products. Aldi and Lidl have seen significant success in this market, often being recognized as the most economical supermarkets by consumer experts. Their popular rotating middle aisles have attracted large crowds, leading to queues outside their stores and viral social media posts.
Morrisons executives have confirmed this new approach as their sales slowed during the Christmas period, with the supermarket reporting losses of £381 million in 2025 while maintaining flat core earnings, as reported by The Sun. Recent data indicates that Morrisons’ market share decreased to 8.5% in the 12 weeks leading up to December 28, with Aldi surpassing Morrisons in 2022 and Lidl poised to follow suit.
As UK supermarkets lower prices on numerous everyday products and shut down underperforming outlets, they are compelled to reassess their strategies in response to the changing shopping habits driven by Aldi and Lidl.
Traditional British supermarkets are facing challenges to maintain profitability while matching the low-cost model of discounters amidst increased labor costs, transportation expenses, and energy bills.
Morrisons is fighting back by expanding its discount range, “When It’s Gone, It’s Gone,” and emulating Aldi and Lidl’s middle aisle concept, which offers exclusive deals on non-food items like toys, appliances, gardening tools, and cleaning supplies.
The “When It’s Gone, It’s Gone” range was initially launched in the summer of 2024 across 450 stores, aiming to refresh items every three weeks and present them on wooden crates for a budget-friendly market-style experience. Despite initial challenges with bulk buying and supplier issues, the range was relaunched in November, resulting in a 10% increase in merchandise sales, according to The Sun.
Morrisons anticipates that these cost-effective initiatives will not only drive sales but also attract more customers to their stores, encouraging increased spending on groceries alongside discounted purchases.
Chief executive Rami Baitiéh expressed optimism about Morrisons’ performance, acknowledging the positive impact of the discount range while emphasizing the company’s commitment to further growth and improvement.