Aldi and Lidl Report Record Christmas Sales Amid Cost of Living Crisis

Despite a challenging economic climate, the discount supermarkets attracted millions of new customers and saw significant increases in sales of their premium product lines.

Discount supermarkets Aldi and Lidl reported record Christmas sales in the UK, with Aldi's sales topping £1.5bn for the first time and Lidl's sales growing by 12% year-on-year.
Both supermarkets attributed their success to customers seeking lower prices amid the ongoing cost of living crisis, with Aldi seeing an 8% increase in sales from the previous year and Lidl attracting 4.5 million more shoppers.
Aldi and Lidl's premium product lines, such as Aldi's Specially Selected crackling gammon joint and Lidl's Deluxe range, saw significant increases in sales, indicating that customers were trading up to more expensive items despite budget constraints.
Despite the record sales, both Aldi and Lidl's market shares have seen slight decreases, with Aldi's falling from 10.2% in August to 9.6% in November, and Lidl's standing at 7.8%.
The British Retail Consortium reported that food price inflation had dropped to 6.7% in December, down from 7.7% the previous month, but warned that prices could rise again in 2024 due to new border checks for EU imports and higher business rates.