Supermarket chain Morrisons will now aim to sell items in its middle aisle at around half their usual price, to compete with similar existing strategies at Aldi and Lidl.
Morrisons, the UK’s fifth-largest grocery franchise, suffered financial losses of £381 million pre-tax for the year to October 2025. Although this is an improvement on losses of £414 million in 2023-24.
The business lost its title as Britain’s fourth largest grocer to Aldi in September 2022, and is predicted by some experts to soon be surpassed by Lidl in the ranking of UK supermarkets.
In order to compete, Rami Baitiéh, CEO of Morrisons, announced a further 2,500 price cuts at the start of January and wants to transform Morrisons into a one-stop shop where customers could get all their necessities without having to leave. This is a step away from Morrisons’ traditional roots, best known for its fresh British produce, formal counters and bakeries.
The supermarket is now taking inspiration from strategies implemented by Aldi and Lidl early last year, where they offered limited-time deals on goods laid out in the middle of the supermarket, for a period of two to three weeks. The discounted products can include everything from kitchen supplies to bikes, towels, or luggage.
The “middle aisle” strategy has proven to be “incredibly profitable”, Paul Foley, a former Aldi UK chief told the The Telegraph. He explained that “the aisles account for between 10 to 15 per cent of their overall sales, but they’re actually more profitable than the grocery side of the businesses on a percentage basis”.
In November, Morrisons relaunched its “When It’s Gone, It’s Gone” range, but it initially experienced issues around supply and safety standards. It struggled to compete against the German companies who were able to deliver much lower prices by buying in bulk.
Since then, Morrisons insists that it has turned the situation around and is pushing forward with the strategy after receiving positive results.
Thanks to the middle aisle range, the general merchandise sales rose by 10 per cent over Christmas, which Mr Baitiéh described as a stand-out achievement.
“We had a good Christmas in 2025, providing a solid foundation for the first quarter. As we enter 2026, the grocery market remains competitive and we are committed to our focus on delivering good value and keeping prices low for customers, announcing a further 2,500 price cuts at the start of January,” Mr Baitiéh said.
The supermarket is aiming to double its sales in the years ahead using this middle aisle strategy and has since hired former B&M executive Simon Buckley as its new general merchandise trading director.
