Published by Global Banking and Finance Review
Posted on January 24, 2025
By James Davey
LONDON (Reuters) -Aldi UK, the British arm of the German discount supermarket group, said on Monday its sales increased 3.4% in the four weeks to Dec. 24 year on year to top 1.6 billion pounds ($2 billion), helped by shoppers trading up to its premium own-label products.
Britain's fourth-largest grocer behind Tesco, Sainsbury's and Asda said sales of its premium 'Specially Selected' range, including products such as Wagyu Tomahawk steak and Roly Poly whole turkey, jumped by 12% compared with the same period of 2023.
Analysts expect strength in premium food will be one of the key themes of the Christmas trading season with consumers opting to increase spending on more expensive products to eat at home rather than dining in restaurants.
Aldi UK also highlighted that it sold 350,000 fresh British turkeys, over 400 tons of British beef, almost 3 million British Brussels sprouts and around 50 million mince pies.
The discounter, owned by Germany's Aldi Sud, and rival discounter Lidl GB have expanded rapidly over the past two decades, transforming the British supermarket scene and forcing traditional players to compete more aggressively on price.
Last week, Lidl GB reported a 7% rise in sales over the four-week Christmas period.
Aldi UK's sales growth did, however, slow in 2024.
The most recent industry data showed Aldi UK's sales rose 2.1% over the 12 weeks to Dec. 1 year on year, with its market share unchanged at 10.3%.
Aldi UK CEO Giles Hurley was cautious on the outlook for the UK consumer in 2025.
“As we look ahead to the new year, which for many will mean the prospect of living costs rising again, many families will be nervous about what 2025 holds," he said.
But he pledged that the price gap with the traditional full-price supermarkets would remain "as big as ever".
UK supermarkets have warned that tax rises in the new Labour government's first budget in October, together with another rise in the national minimum wage, will be inflationary in 2025.
Tesco and Sainsbury's are due to report on Christmas trading on Thursday and Friday respectively.
($1 = 0.8037 pounds)
(Reporting by James Davey; Editing by Kate Holton)
