Lidl has reported its strongest UK Christmas trading period, with sales rising by 7 per cent year-on-year in the four weeks to 24 December, surpassing the £1 billion milestone for the first time.
Two million more shoppers visited its stores during the festive season, lured by cut-price champagne and an “affordable” party food range, which saw sales jump by almost a third.
The German-owned grocer revealed a 25 per cent rise in champagne sales, the equivalent of 11 million glasses poured, while British turkeys remained a favourite, selling at a rate of one every second. Customers also snapped up 16 million pigs in blankets, 8 million stuffing balls and 2 million litres of gravy.
Ryan McDonnell, Lidl GB’s chief executive, said the retailer’s blend of “unbeatable quality and value” had drawn more shoppers than ever, adding that the company would “build on our momentum” through continued store openings and competitive pricing.
Lidl’s market share has continued to climb as rising living costs push consumers to seek value. Industry analysts at Kantar recently named Lidl as the country’s fastest-growing bricks-and-mortar grocer, edging closer to Morrisons’ position as the UK’s fifth largest supermarket.
Although it represents slower growth than the 12 per cent increase recorded over the same period a year ago — when inflation on food and drink was more pronounced — Lidl’s performance stands out as many shoppers have reined in supermarket spending to focus on smaller indulgences such as beauty and entertainment products.
The supermarket sector will face further scrutiny in the coming week, as Sainsbury’s and Marks & Spencer unveil their festive figures. Meanwhile, the British Retail Consortium has warned of a potential “spending squeeze” in January, with consumer confidence taking a hit towards the end of the year.