Lidl Achieves Over £1 Billion in UK Sales Ahead of Christmas for the First Time in 30 Years
Lidl has surpassed the £1 billion mark in UK sales during the run-up to Christmas, a milestone not reached in the discount grocer’s three decades in the country. This achievement comes as budget-conscious shoppers continue to cut costs.
The German-owned discounter, which is poised to overtake Morrisons as the UK’s fifth-largest supermarket chain, reported more than £1 billion in sales over the four weeks leading up to Christmas Eve. This marks a 7% increase compared to the same period last year, driven by over 2 million shoppers seeking festive deals. Lidl experienced its busiest day of the year on December 23rd.
During the festive period, Lidl sold over 16 million British pigs in blankets, 8 million stuffing balls, and 2 million liters of gravy. Champagne sales surged by 25%, and turkeys were purchased at a rate of one per second between December 19th and 24th.
Lidl’s impressive sales figures serve as an early indicator as Britain’s retailers prepare to report their Christmas trading results in the coming weeks, with overall festive spending expected to reach nearly £23 billion.
“We were thrilled to welcome more customers than ever before,” said Ryan McDonnell, Chief Executive of Lidl GB. “Looking ahead, we’re excited to build on our momentum, growing our presence across the country to deliver the highest quality at the best prices on the market.”
In November, McDonnell had warned that price increases were “inevitable” due to the government’s changes to employers’ national insurance contributions and minimum wage hikes.
Lidl currently operates over 970 stores in Great Britain. Last year, the UK business returned to profit after slowing expansion to focus on improving existing stores, resulting in sales jumping to nearly £11 billion.
Since launching in the UK in 1994, Lidl, along with its rival Aldi, has significantly changed shopping habits. The discounter has attracted over 300,000 new shoppers, with 60% of Britons visiting the chain in the last financial year.
Lidl reported a profit of £43.5 million for the year ending February 2024, a significant recovery from a £75.9 million loss the previous year. This turnaround was achieved by scaling back investments, resulting in the opening of only one new store compared to 45 in the prior year.
The supermarket chain also experienced a nearly 17% increase in revenues, totaling £10.9 billion during the last financial year. Lidl attributed this growth to substantial investments in store enhancements, including the addition of more refrigerators to ensure product freshness, an expanded product range, and competitive pricing strategies. Additionally, the company saw a 24% rise in the number of users participating in its loyalty program.
“These strategic decisions have enabled us to strengthen our financial position while continuing to deliver high-quality products and services to our customers,” said a Lidl spokesperson. The focus on improving existing stores and enhancing customer experience has proven effective in driving both profitability and revenue growth.
