Aldi reports record Christmas sales

Discount supermarket Aldi has reported record Christmas trading after a 15% rise in December sales.

Discount supermarket Aldi has reported record Christmas trading after a 15% rise in December sales.

The firm said there was strong demand for its premium product range, launched to compete with higher-end retailers such as Waitrose and Marks and Spencer

Aldi does not publish like-for-like figures, which exclude sales from new stores, but last year it opened 70 new outlets, an 11% increase.

Aldi plans to open another 70 stores across the UK this year, with its 700th due to open in February.

The supermarket added that it predicted sales from its “Specially Selected” lines would exceed £750m in 2017.

Early indications are that the value players were Christmas 2016’s big winners, with shoppers already bracing themselves for the challenging economic conditions ahead.

With a continued focus on price and improving value perceptions, Aldi is well placed to maintain its momentum into 2017 given that planned store refurbishments would help create “a stronger first impression for new customers”.

 

Analysts think that Marks and Spencer, which publishes its trading update on Thursday, can hardly fail to improve on 2015’s Christmas trading, when sales at its non-food business fell almost 6%.

M&S performed so poorly in clothing and homewares through the third quarter last year, we see a good possibility that the division reports a small positive like for like outcome this time.

Morrisons releases its figures for the Christmas period on Tuesday, followed by Tesco on Thursday.

Analysts are expecting both of those supermarkets to report growth in like-for-like sales of about 1% for the Christmas trading period.

Earlier, a report from payment card company Visa suggested that the final three months of last year saw the strongest quarterly growth in consumer spending in two years.

Its research, which reflects cash and card spending, showed expenditure rising at an annual rate of 2.8% in the fourth quarter, the quickest quarterly growth rate since the end of 2014.

For December, Visa’s report showed overall spending increasing at an annual rate of 2.6%, with shops recording a modest 0.7% growth rate, but online spending growth rising by 5.5%.

Of all the categories measured, hotels, restaurants and bars saw the strongest expenditure growth, up 7.3%.

January 15, 2017   Posted in: Business Growth, Business Sales, Business Win, Growing Business, Winning Business

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