According to data from the research firm, Morrisons has lost its position as the UK's fourth largest supermarket to the German discounter.
Shoppers are taking steps to manage their budgets as discounters grab more market share.
As energy costs soar, food prices are rising quickly as well.
The average grocery bill went up to $5,181 in August.
The cost of living in the UK has gone up.
"Shoppers are taking steps to manage their budgets, including broadening the range of stores they visit, with the discount grocers benefiting," said Fraser.
Shoppers are buying more own brand products to save money.
In the 12 weeks to 4 September, sales of the German discounter rose by 20%, giving it a market share of 9.3%, according to the research company.
Morrisons' sales fell by 4.1% and its market share fell to 9.1%.
The discounter's sales increased by more than 20% and it gained market share.
Three quarters of the sector was accounted for by the traditional big four, but that is no longer the case.
The discounters have seen a sales increase recently.
He said that 14.2 million people had been shopping at the grocery store in the last three months.
Over the past decade, the market share of the two companies has grown.
Ocado said it expected to see a small drop in sales this year due to customers buying less and looking for cheaper items.
The company had previously predicted an increase in sales.
As rising costs, including energy and dry ice, and the lower average value of people's shopping baskets offset a growth in the number of customers, the company expects earnings to be close to break-even this year.
All Rights Reserved © 2024
