Lidl Christmas sales jump 25% as shoppers switch to discounters

LONDON, UNITED KINGDOM - 2022/06/06: Shoppers walk past the Lidl store in London. (Photo by Dinendra Haria/SOPA Images/LightRocket via Getty Images)
Lidl sales surge by nearly a quarter in run-up to Christmas. Photo:Getty

Lidl saw rise of almost 25% in UK sales during the Christmas period, with the discount supermarket claiming the boost reveals a surge in new shoppers switching from rivals due to the cost of living crisis.

The German-owned chain said the Friday before Christmas was its busiest ever day, with the retailer gaining 1.3 million British shoppers over the Christmas period compared with a year earlier.

Lidl said sales increased by 24.5% over the four weeks to 25 December, compared with the same period in 2021.

Lidl GB chief executive Ryan McDonnell said: “Every week of the year we are seeing more customers coming through our doors, switching spend to Lidl from the traditional supermarkets.

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“We know they switch to us to make savings, but then they stay with us when they realise that they’re not having to compromise on quality, and this Christmas was no exception.”

Annual food price inflation in the UK reached 13.3% in December, according to the British Retail Consortium ⁠— the highest since at least 2005 when those records began.

Shoppers switched nearly £63m in spending from other supermarkets during December, it said, almost triple that of Christmas 2021.

A Deluxe Matured Christmas pudding from Lidl, as the discount supermarket's 2.99 Christmas pudding has trumped its pricier rivals in tests by watchdog Which?   (Photo by Peter Byrne/PA Images via Getty Images)
Lidl highlighted a strong performance in its Deluxe products, with sales of its Christmas pudding in the range increasing by 185% year on year. Photo: Peter Byrne/PA via Getty

McDonnell added: “Our strategy ⁠— great quality products at low prices ⁠— has remained the same since we first opened our doors over 28 years ago.

“That is only because it’s as relevant now as it ever has been.

“It is working because we are seeing big switching gains, with over £63m of spend moving to us in the four weeks to the 25th of December.

“We only see this momentum continuing in 2023.”

Read more: Christmas grocery spending hits new high

The retailer also highlighted a strong performance in its Deluxe products, with sales of its Christmas pudding in the range increasing by 185% year on year. Meanwhile, sales of its premium cheese rose by almost 30% for the period.

The latest Kantar Worldpanel report showed Lidl's market share last month at 7.2% compared with 6.3% 12 months previously.

Lidl GB has 28,000 employees and 950 stores in England, Scotland and Wales.

Watch: Lidl claims cost of living boost as Christmas sales rise by a quarter