Discount grocer Aldi has “disappointed” the retail industry, despite boasting of a record Christmas during which sales topped £1 billion.
The German-owned chain said it had hit the sales landmark in the four weeks to Christmas Eve, with total sales up 7.9% on last year. Sales of alcohol and British meat were strong, helped by an ad campaign featuring mascot Kevin the Carrot and singer Robbie Williams, it said.
Aldi UK chief Giles Hurley said: “More customers than ever before shopped with us this Christmas because they knew Aldi offered unbeatable value on premium products and the lowest prices on festive essentials.”
But analysts were sceptical, noting that the company refused to give a comparable store sales figure, and that growth rates were below the previous year.
Shore Capital analyst Clive Black said: “Aldi will be somewhat disappointed with this Christmas trading performance, and one senses that their German rivals Lidl will have well beaten them in momentum. With aggressive price investment, very extensive marketing (Kevin) and possibly high wastage... the profit performance may also not have been ideal.
"What this indicates to us is that Aldi had to compete for its trade against more aggressive and effective supermarkets. Also, in approaching circa 70% of its 2025 space target in the UK, the British division of this German business is perhaps through the zenith of its momentum."
Markets.com analyst Neil Wilson said: “Whilst we should always take numbers from private companies with a pinch of salt, the performance does not suggest that the Big Four listed supermarkets experienced a tremendous festive bounce."
Shares in Aldi’s listed rivals all fell as the FTSE 100 tumbled today. The discounter’s Christmas trading update kicks off a busy week with Morrisons reporting to the City tomorrow, Sainsbury’s on Wednesday, and Tesco, Marks & Spencer and Waitrose owner John Lewis posting updates on Thursday.
