German discount food brands Aldi and Lidl announced record Christmas sales in the United Kingdom on Tuesday, driven by inflation, which has sent prices soaring, driving more and more Britons away from traditional supermarkets. Aldi recorded its “best Christmas ever” in the UK with sales exceeding £1.5bn [1,7 milliard d’euros] for the first time in the four weeks leading up to Christmas Eve,” with sales up 8% year-over-year, according to a press release.
Considered the cheapest supermarket in the United Kingdom by the consumer association “Which?”, Aldi became the fourth chain in the country in terms of market share a little over a year ago, according to the Kantar study, doubling Morrisons stores. but still behind Tesco, Sainsbury’s and Asda. Very high for many months, inflation clearly stagnated at the end of 2023 in the United Kingdom, at 3.9% year-on-year in November, but the price increases recorded in particular for food products remain significant.
Family budgets under pressure
Household budgets are also under pressure from high interest rates, a consequence of the Bank of England’s efforts to curb inflation, which has sharply increased the cost of mortgages. The record Christmas sales “cap a remarkable year for Aldi, during which the company attracted more than half a million additional customers” by moving away from leading British supermarkets, the group further stated.
For its part, Lidl, the sixth chain in the country and which also periodically gains market share in the United Kingdom, also announced on Tuesday that it had achieved a record Christmas throughout the English Channel. The brand saw its sales increase 12% year-on-year in the four weeks leading up to December 24.
The two German chains “have intensified price competition in the UK, prompting other supermarkets to offer discounts and promotions and to think of innovative ways to stimulate customer demand, including a focus on their loyalty programmes” , says Victoria Scholar, analyst at Interactive Investor. .
Source: BFM TV
