Aldi's premium range flies off shelves as it reports record-breaking Christmas
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Discount supermarket Aldi has reported a record-breaking £1.6bn in sales over the crucial festive month, with customers opting for its premium ranges. The German-owned retailer, which is Britain's fourth-largest supermarket, saw total sales rise by 3.4% in the four weeks leading up to Christmas Eve. According to the company, sales of its high-end own-label products, Specially Selected, surged by 12% compared to the previous year.
Chief executive Giles Hurley stated, "Customers wanted to celebrate in style after an uncertain year but, with more challenges ahead, they wanted to do it without breaking the bank." Although Aldi's Christmas sales performance fell short of last year's 8% growth, the company described it as its "best Christmas ever" and a new record.
The German discounters have initiated the festive reporting season in the supermarket sector, with Tesco, Sainsbury's, and Marks & Spencer set to release their figures later this week. Following the news, shares in some listed rivals declined in Monday morning trading, with M&S dropping by as much as 5% and Tesco also experiencing a 1% decline.
AJ Bell noted that Aldi's figures indicate the chain is encroaching on the lucrative premium market dominated by Tesco and Sainsbury's. Investment director Russ Mould commented: "Sainsbury’s and Tesco have enjoyed strong growth in recent years for their own premium ranges, helping to differentiate their offerings from discounters Aldi and Lidl. To see Aldi start to eat their premium lunch is a concern.".