Lidl has reported a year-on-year sales increase of 8% over Christmas in the six weeks leading up to 30th December. The growth was attributed to its strongly positioned premium range and continued expansion of its estate.
Premium private label increasingly resonates with shoppers
Lidl’s premium private label product range ‘Deluxe’ saw a 33% sales increase year-on-year over the holiday period. Products that performed best were the free-range turkey and speciality fruit and vegetables, with sales increasing more than 100% year-on-year.
Discounters Lidl and Aldi see their premium ranges as an important point of differentiation from non-discount retailers. The high quality low price proposition increasingly resonates with shoppers in the challenging environment leading up to Brexit.
Aldi had its best-ever Christmas with sales of close to GBP1bn in the month of December. This was a growth of 10% for the week commencing 17th December.
Its premium range was said to be a key driver of this. Aldi’s fastest growing private label was ‘Specially Selected’ with sales increasing 25% in the 12 weeks leading up to 12th December.
Continued investment in expansion
Lidl continued to invest in opening new stores over the festive period, with seven additional sites added to its estate. Expansion is planned to continue with a further investment of GBP1.45bn across 2019 and 2020 in the UK. This includes the opening of a new regional distribution centre in Doncaster in early 2019.
Click here to compare retailers seasonal performance with our Christmas results tracker. For more Christmas coverage see Senior Retail Analyst Nick Gladding's video briefing of Christmas performance and trends. This will be available on January 23rd.