German-owned discounter Aldi has overtaken Morrisons and Sainsbury's for the first time to become Scotland's third-largest grocer by volume as the cost-of-living crisis grinds on.

Aldi currently has 104 stores across Scotland employing approximately 3,500 people, having opened three new outlets last year. It is spending £20 million in 2023 to open a further three stores north of the border.

According to research group Kantar, Aldi had an 11 per cent volume share of the grocery market in Scotland during the 12 weeks to May 14, ahead of Sainsbury's on 7.6% and Morrisons on 8.8%. It trailed market leader Tesco on 24% and Asda at 13.8%.

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“This is a momentous moment for Aldi in Scotland, as we continue to build our presence within the Scottish market," said Graham Nicolson, group buying director for Scotland. "We are committed to offering our customers top-quality products at affordable prices and as the data shows people are switching to shopping with Aldi in their droves."

The record volume market share comes as Aldi prepares to make its 13th appearance at the Royal Highland Show this week. Mr Nicolson said the group's success in Scotland is testament to its commitment to local sourcing.

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"We are very proud of the strong relationship we have built with our Scottish suppliers, which gives our customers the opportunity to purchase locally sourced high-quality products and support Scottish businesses," he said.

"The Royal Highland Show is something we look forward to every year and I am grateful to our network of suppliers who are supporting us at this year’s event. I encourage everyone attending the show to visit our marquee and try our Scottish range for themselves; I guarantee they won’t be disappointed.”