Lidl made more than £1bn in sales in the run-up to Christmas for the first time in the three decades the discount grocer has been operating in the UK as cash-strapped shoppers cut costs.
The German-owned discounter, which is close to overtaking Morrisons to become the UK’s fifth biggest supermarket chain, said it made more than £1bn in sales in the four weeks leading up to Christmas Eve.
The company recorded a 7% increase in sales on the same period a year earlier as more than 2 million shoppers sought festive season deals. The supermarket chain experienced its busiest day of the year on 23 December.
Lidl said it sold more than 16m British pigs in blankets, 8m stuffing balls and 2m litres of gravy. Champagne sales grew by 25%.
Shoppers snapped up turkeys at a rate of one a second between 19 and 24 December.
Lidl’s sales update sets down an early marker as Britain’s retailers prepare to report on how trading fared over the crucial Christmas period in the coming weeks. Shoppers had been expected to spend almost £23bn over the festive period.
“This year we were thrilled to welcome more customers than ever before,” said Ryan McDonnell, the chief executive of Lidl GB. “Looking ahead, we’re excited to build on our momentum, growing our presence across the country to deliver the highest quality at the best prices on the market.”
In November, McDonnell warned that price rises were “inevitable” as a result of the government’s changes to employers’ national insurance contributions and minimum wage increases.
Lidl operates more than 960 stores in Great Britain and its UK business bounced back into profit last year after it slowed expansion in favour of improving existing stores, spurring a jump in sales to almost £11bn.
The discounter launched in the UK in 1994 and, with its rival Aldi, has changed shopping habits. Lidl said it had gained more than 300,000 new shoppers, and 60% of Britons visited the chain in the last financial year.
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Profits rebounded to £43.5m in the year to February 2024, up from a £75.9m loss the year before, as the group cut back investment. It opened only one net new store, according to the accounts, compared with 45 the previous year.
The grocer notched up an almost 17% jump in revenues in the last financial year, to £10.9bn. Lidl said its growth was driven by significant investment in upgrading stores, with more fridges to improve product freshness, expanded ranges and competitive prices, as well as a 24% rise in users of its loyalty scheme.
