Lidl saw its strongest Christmas performance on record, with sales growth reaching +17.9% in the four weeks to 27 December. Performance was driven by an increased basket size, which rose 24.8%. We take a look at the other factors that helped Lidl to a record breaking Christmas.
Promotional incentives help to differentiate from Aldi
Based on released results, Lidl is the best performing of key retailers over the Christmas period so far. The only other retailer to see stronger growth, was variety discounter B&M at +26.6%. Lidl's growth was much stronger than Aldi at +10.6%. This followed the pattern seen in 2019, when Lidl's growth was 11% and Aldi's 7.9%.
The retailer's focus on promotional incentives will have helped drive shoppers into store, and accelerate growth. On 10 December it launched a £10 money off voucher in two national newspapers for shoppers to use in the run up to Christmas. Lidl would have also benefitted from this being the first Christmas shoppers could use its Lidl Plus app. This app entitles shoppers to money off their first shop, discounts on selected private label products and partner offers.
For subscribers looking for more information on Lidl Plus, see our Lidl Plus loyalty programme insight deck.
Average grocery price per pack declined for Aldi in the run up to Christmas, according to Kantar. Whereas at Lidl, it rose. This would have also contributed to the difference in performance between the discounters.
Looking for more insight?
See key retailer's performance over the golden quarter as they are announced in our UK Christmas 2020 results tracker. Also, see the latest Kantar market shares from the 12 weeks to 27 December.
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