Aldi reports almost £1bn in Christmas sales as Morrisons slashes prices

Customer demand for the finer things boosted Aldi’s sales in the UK over Christmas, with the grocer reporting almost £1bn in sales for December, which it put down to demand for its premium lines.

The Germany-based limited assortment discounter - the UK’s largest outside the big four of Tesco, Sainsbury’s, Asda and Morrisons - said it saw demand spike for its ‘Specially Selected’ and ‘Exquisite’ own-brand ranges.

Aldi was still in expansion mode through 2018, opening 65 new locations to take it to 827 stores, as it worked towards its goal of 1,200 UK supermarkets before the end of 2025.

“We begin the new year with great momentum as the UK’s fastest-growing supermarket and on the back of record Christmas sales,” said Aldi UK chief executive Giles Hurley.

Pressure from the discounters - Aldi and its competitor Lidl - has seen the traditional grocers make a number of moves to guard their market share in recent times.

Last year, Tesco unveiled its own discount format ‘Jack’s’ at a site in Chatteris, which it had built but abandoned before opening several years earlier in a round of cost-cutting measures.

And on Monday, Morrisons announced it was cutting prices by up to 20% on over 900 products, including canned tomatoes, sandwich fillers, cereals, multivitamins, and ready-meals.

“We’re listening to customers who are telling us that their budgets will be stretched in January, so we are cutting every penny we can on the essentials that will help them feed their families,” said marketing director Andy Atkinson.

Christmas trading updates are expected in the coming week from Tesco, Sainsbury’s, Morrisons, Marks & Spencer, and Waitrose & Partners.

Market watchers were expecting a 3.5% fall in like-for-like sales from M&S, which struggled through 2018 as it closed a swathe of stores.