Britain's leading discount supermarkets, Aldi and Lidl, have powered to record Christmas sales, new figures reveal, as traditional rivals Asda and the Co-operative Group lost ground with shoppers for whom price was the "biggest priority."
Discounters Dominate Festive Trading
Aldi reported a colossal £1.65 billion in sales over the four weeks leading to Christmas Eve, marking a 3% year-on-year increase. The German-owned chain, now the UK's fourth-largest grocer, recorded an unprecedented 57 million transactions during the period. Its sales surged by more than 5% in the crucial final trading week before Christmas, with tills ringing up approximately £500 million.
Lidl, meanwhile, was crowned the fastest-growing physical supermarket chain over the festive season, according to the latest data from Worldpanel by Numerator. The combined performance of the two discount giants meant they achieved their biggest-ever Christmas market share, capitalising on a consumer focus on value.
Traditional Supermarkets Feel the Squeeze
This strong showing by the discounters came at the direct expense of some established players. Both Asda and the Co-operative Group were reported to have seen their sales and market share decline during the same period, highlighting the intense and ongoing competitive pressure in the grocery sector.
Giles Hurley, Chief Executive of Aldi UK and Ireland, stated: "This Christmas proved once again that a great quality Christmas can still be affordable. We’re grateful that more people than ever chose Aldi for their Christmas shop and trusted us to deliver both quality and value during what remains a challenging time for many."
Analysis: Value Reigns Supreme for Shoppers
Industry experts underscored that the cost of living continues to shape shopping habits. Russ Mould, Investment Director at AJ Bell, commented: "The pressure on the traditional supermarkets from discount operators shows no signs of going away... Aldi and Lidl are now established names in the UK, helped by pressures on household budgets which make their value credentials highly prized."
Fraser McKevitt, head of retail and consumer insight at Worldpanel, described it as a "Christmas of smart savings and considered choices." He noted that while shoppers indulged in premium ranges, they relied heavily on loyalty schemes and discounters to manage budgets. McKevitt also highlighted a longer-term trend, stating: "Over the last five years, the number of households cutting alcohol out of their shopping basket altogether has steadily increased," with a parallel boom in low and no-alcohol alternatives.
The data confirms a sustained shift in the UK grocery landscape, with the discount model's focus on limited ranges, own-label products, and sharp pricing proving resilient and increasingly attractive to a broad cross-section of British consumers.
