Lidl has reported its strongest ever UK Christmas trading period, with sales up 7 per cent year-on-year in the four weeks to 24 December, surpassing the £1 billion milestone for the first time.
Another two million shoppers visited its stores over the Christmas holidays, lured by cheap champagne and a variety of “affordable” party foods, causing sales to jump by nearly a third.
The German-owned grocer reported a 25 percent rise in champagne sales, the equivalent of 11 million glasses poured, while British turkeys remained a favorite, selling at one rate every second. Customers also snapped up 16 million pigs in blankets, 8 million stuffed balls and 2 million liters of alcohol.
Ryan McDonnell, chief executive of Lidl GB, said the retailer’s combination of “unbeatable quality and value” was attracting more shoppers than ever before, adding that the company would “build on our momentum” with further store openings and competitive prices.
Lidl’s market share has continued to rise as the rising cost of living pushes consumers to look for value. Industry analysts at Kantar recently named Lidl as the country’s fastest-growing bricks-and-mortar retailer, closing in on Morrisons’ place as the UK’s fifth largest supermarket.
Although it represents slower growth than the 12 per cent increase recorded in the same period last year – when inflation in food and drink was more pronounced – Lidl’s performance is notable as more shoppers are ditching their big-box spending to focus on smaller things like beauty. and entertainment products.
The supermarket sector will be under more scrutiny next week, as Sainsbury’s and Marks & Spencer release their festive figures. Meanwhile, the British Retail Consortium has warned that there is a possibility of a “money squeeze” in January, and consumer confidence will be affected by the end of the year.
