Lidl UK said sales had increased by 17.9 per cent in the four weeks to 27 December, driven by customers buying more goods in store and switching away from rivals.
The discounter said its performance meant it was the fastest growing retailer versus the big 4 supermarket chains Tesco, Sainsbury’s, Asda and Morrisons, and other competitors.
The grocery sector saw the busiest December ever as the closure of restaurants, bars and cafés due to COVID-19 restrictions meant shoppers spent £11.7 billion on groceries, according to market researcher Kantar.
Lidl said its average basket size increased by 24.8 per cent year-on-year, boosted by demand for festive products such as mince pies.
The retailer said it was investing £1.3 billion to increase stores numbers to 1,000 by 2023.