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Retail

Lidl UK's Christmas Performance Shows 'Rapid Migration' Towards Discounters

By Steve Wynne-Jones
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Lidl UK's Christmas Performance Shows 'Rapid Migration' Towards Discounters

A leading retail analyst has said that the positive performance of Lidl UK's operation over the Christmas period indicates the level to which there has been a "rapid migration" to the discount channel in the market.

Richard Lim of Retail Economics was speaking following Lidl UK's announcement that it posted a 11% increase in overall sales in the four weeks to 29 December, with 23 December the retailer's busiest trading day to date.

'Best In Class'

“Lidl's double-digit growth over the Christmas period demonstrates consumers' rapid migration towards the discounters as the quality, range and overall proposition rivals the best in class," Lim commented.

"Despite vast improvements in household spending power, many shoppers continue to prioritise value over a wider range, evidenced by their relentless rise in market share."

Lidl's announcement follows a week of retailer trading figures, with Tesco arguably the best performing of the UK's 'Big Four' retailers during Christmas, registering a 0.4% like-for-like sales increase.

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"At the heart of Lidl's success has been their unwavering focus of building a distinct proposition around quality and value that differentiates them from other grocers," Lim added.

"They have executed this effectively, consumers know exactly what they stand for and it has been embraced by a diverse array of households."

Category Growth

Lidl said that its wine sales were up 20% over Christmas, with the overall beers, wines and spirits category up by 13%. In general merchandise, sales were up 9%, it said.

“This was our 25th Christmas since first opening our doors in Britain, and what a Christmas it’s been, with more customers shopping at Lidl than ever before,” commented Lidl chief executive Christian Härtnagel.

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“After more than doubling our market share over the past ten years, we’re excited to be entering a new decade and all the potential it brings for us."

Lidl has targeted 1,000 stores across the UK by 2020, and will increase its investment in new store openings this year, it said.

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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