Three food discount strategies this Christmas in the UK

Lucy Ingram
Retail Analyst
@RetailAnalysis

Date : 19 December 2019

Aldi and Lidl are going all out to show shoppers choosing a discounter for your Christmas shop does not mean compromising on choice or quality. We look at three ways the retailers are delivering value, alongside giving the festive period a luxury feel.

1. Marketing focusing on quality and range

Marketing during the golden quarter is perhaps more important than at any other time of the year, as retailers compete to deliver great campaigns to entice shoppers into store. Building excitement and connecting with shoppers on an emotional level is key.

Aldi: Kevin the Carrot ‘Put on an amazing show’

For the third year in a row, Aldi's campaign remains centred on its Kevin the Carrot character. Aimed to appeal to families, Kevin is a powerful tool in driving the family shopper into store. Shoppers queued outside stores on ‘Orange Thursday’ when plush Kevin the Carrot toys went on sale. Captilising on Kevin's popularity, Aldi has added to its Kevin range this year, with products including Kevin the Carrot vol au vent cases.  

Source: YouTube, Instagram and Aldi

Lidl-Big on a Christmas you can believe in ‘More for everyone for this Christmas’

Lidl has adapted it’s ‘Big on quality, Lidl on price’ campaign to become 'Big on Christmas’. A modern and relatable campaign, it has an inclusive feel highlighting how Lidl's product range can meet everyone's Christmas needs.

Source: YouTube, Instagram and Lidl

2. Celebrating in and out of store

Both retailers have invested in enhancing the shopping environment in-store to ensure shoppers are thinking about Christmas throughout their shopping journey. Alongside this they have used different ways outside stores to entice shoppers in.

In-store,  Aldi's Kevin the Carrot appears alongside colourful shelf highlighters to draw shoppers’ attention to the Christmas range across categories.

Source: IGD Research

Activity on social media has included Aldi's first Facebook Live event, giving shoppers recipe tips and tricks from its food stylist Clover Hutson in the run up to Christmas.

Source: Facebook

Lidl launched its Christmas range before Aldi, with a wide range of products on the shelf by mid-November. This helped to build excitement and support shoppers seeking tospread the cost of Christmas.

The front of Lidl stores are dedicated to the Christmas offering, including fresh Christmas trees. Having all products merchandised together makes the shopping experience easy and convenient.

Source: IGD Research

Lidl have two Christmas magazines which can be found in store or online. The premium production of these contains beautiful photography, meal ideas and options for alternative diets. The ‘big on quality, Lidl on price’ messaging can be found throughout the store.

Source: IGD Research

Lidl also conducted an out of store campaign, with posters featuring Christmas cracker joke humour to highlight its price competitiveness. 

Source: Campaign Live

3. Decadence on a budget

Reporting strong performances for Christmas 2018, both discounters highlighted rapid growth of their premium private label ranges. 

This year Aldi has launched 136 new lines and changed 200 for Christmas. Premium tier Specially Selected is prominent within this, with innovative twists such as chorizo pigs in blankets, and black forest crumble mince pies. A handful of super-premium Exquisite lines hold extra appeal for gifting. New vegan and vegetarian options also cater for this growing trend. 

Source: IGD Research

For Lidl most of the range is Deluxe or Favorina. Perennial favourites include higher value items like the £24.99 Jamon and £11.99 award-winning Deluxe Christmas pudding. There is also a large selection of party food, with innovative products such as pulled jackfuit bao buns. 

Source: IGD Research

Aldi is offering its Christmas Super 6 selection for 19p per bag, and Lidl even lower at just 15p.  neither retailer has departed from its core value proposition. However, the higher prices across the premium ranges show they are no longer only looking to differentiate only on price, but also value for money.

Looking for more Christmas insight? 

Read about Aldi opening an online toy shop.

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