The Big Four supermarkets are expected to lose another four per cent of their market share by 2020.
According to a report published by credit rating agency Moody’s, this loss of market share will be to discounters Aldi and Lidl, as competition in the grocery retail market intensifies.
Moody's also predicts that Aldi and Lidl's combined market share will reach 12-15 per cent by 2020, up from 9.3 per cent, fuelled by the duo continuing to grow their estate.
Sven Reinke, Moody’s vice president and senior analyst, told City AM that Tesco, Morrisons, Asda and Sainsbury’s margins are unlikely to recover over the next 12 to 18 months due to further price cuts and like-for-like sales declines.
“However, the UK’s economic growth, rising real wages and improving consumer sentiment could support the Big Four’s gradual recovery from fiscal 2016-17,” Reinke added.
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