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Morrisons launches 2,500 price cuts to compete with Aldi and Lidl

Jan 26, 2026, 2:40 PM10
(Update: Jan 26, 2026, 2:40 PM)
chain of supermarkets in the United Kingdom
brand name of two global discount supermarket chains
German global discount supermarket chain

Morrisons launches 2,500 price cuts to compete with Aldi and Lidl

  • Morrisons suffers pre-tax losses of £381 million for the year to October 2025, improving from previous losses.
  • The supermarket chain implements 2,500 price cuts in January to compete with Aldi and Lidl.
  • These changes are part of a strategy to ensure Morrisons remains a viable player in the UK grocery market.
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In the competitive landscape of the UK grocery market, Morrisons, the fifth-largest supermarket chain, is taking substantial steps to regain ground lost to rival chains Aldi and Lidl. As of early January 2026, Morrisons has implemented a strategic initiative involving 2,500 price cuts, aimed at attracting more customers and boosting sales in a challenging economic environment. The supermarket has seen significant financial struggles, reporting a pre-tax loss of £381 million for the year ending October 2025, though this marked an improvement over the prior year's loss of £414 million. Furthermore, Morrisons lost its position as the fourth-largest grocer in the UK to Aldi in September 2022 and is now at risk of being overtaken by Lidl, according to analysts. To modernize its approach and emulate successful strategies employed by discount competitors, Morrisons is revamping its middle aisle offering, which features special, limited-time promotions on a range of products, from kitchenware to seasonal items. This move is inspired by the highly profitable middle aisles seen in Aldi and Lidl supermarkets, which reportedly contribute a significant percentage of overall sales. Previous efforts to launch this strategy faced obstacles, including issues with supply and adherence to safety standards. However, the chain has now achieved encouraging results, with a reported 10% rise in general merchandise sales during the Christmas season of 2025. Morrisons' CEO Rami Baitiéh emphasized the importance of adapting to market trends, stating that the supermarket aims to transition into a one-stop shop for customers. This marks a shift away from the company’s traditional identity, known especially for its fresh produce and formal counters. By focusing on value and variety, Morrisons hopes to build a solid foundation for its future, starting with enhancing the experiences and offerings available to shoppers. The leadership intends to build on the success of the middle aisle strategy to double sales over the coming years. The recent hiring of Simon Buckley, a former executive from discount retailer B&M, is part of their efforts to strengthen the general merchandise division and ensure the successful implementation of these changes. As Morrisons navigates the increasing pressures from competitors, particularly in terms of pricing and product offerings, its ability to capture greater market share will largely depend on the effectiveness of these strategies. Maintaining customer loyalty and offering superior value will be critical as the supermarket seeks to cement its place among the top grocery chains in the United Kingdom.

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