2024-01-02 12:01:59
German discount food brands Aldi and Lidl welcomed a “record” Christmas in the United Kingdom, buoyed by the inflationary context across the Channel.
German discount food brands Aldi and Lidl announced record sales for Christmas in the United Kingdom on Tuesday, boosted by inflation which has sent prices soaring, turning more and more Britons away from traditional supermarkets. Aldi recorded ‘best Christmas ever’ in UK with sales topping £1.5 billion [1,7 milliard d’euros] for the first time in the four weeks preceding Christmas Eve”, with sales up 8% year-on-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 research firm. Kantar studies, doubling Morrisons stores, but still behind Tesco, Sainsbury’s and Asda. Very high for many months, inflation markedly stalled at the end of 2023 in the United Kingdom, at 3.9% year-on-year in November, but the price increases recorded by food products, in particular, remain significant.
Household 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 notably 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” turning away from all major British supermarkets, the group further argued.
For its part, Lidl, the country’s sixth largest chain which is also regularly gaining market share in the United Kingdom, also announced on Tuesday that it had achieved a record Christmas across the Channel. The brand saw its sales increase by 12% year-on-year in the four weeks preceding December 24.
The two German chains “have stepped up 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 programs,” notes Victoria Scholar, analyst at Interactive Investor.
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