German discount supermarkets Aldi and Lidl announced Tuesday record UK sales for the key Christmas trading period, buoyed by rising prices for goods nevertheless deemed cheaper that similar rival products.
Sales in December topped £1.5 billion, up eight percent from a year earlier, as shoppers switched away from traditional supermarkets in a cost-of-living crisis, Aldi said in a statement.
“Aldi recorded its best ever Christmas… with many still feeling the squeeze due to the rising cost of living,” the group said.
Rival Lidl added Tuesday that it enjoyed its “best Christmas yet” in Britain, with UK sales swelling by 12 per cent.
Recent official data showed that UK annual inflation slowed sharply to 4.6 per cent in November. That was the lowest level in more than two years – but more than double the Bank of England’s 2.0 per cent target.
“German discounters, which are best known for their rock bottom prices, have enjoyed a stellar Christmas amid the cost-of-living crisis as price sensitive consumers trade down,” noted Interactive Investor analyst Victoria Scholar.