Aldi said sales in the UK and Ireland in 2017 topped £10bn for the first time following strong Christmas trading.
The UK arm of the German grocer said sales rose 15% in December compared to the same month a year ago, as shoppers snapped up its premium “Specially Selected” products.
Specially Selected range surpassed expectations
“This was our busiest-ever Christmas as millions of festive shoppers switched to Aldi from more expensive food retailers,” said Aldi chief executive Matthew Barnes.
“Although we saw strong growth across all categories, the performance of our premium Specially Selected range in particular surpassed all expectations.”
Last year Aldi added 76 stores in 2017 and it plans to press ahead with plans for further expansion in the UK.
Aldi and fellow discount grocer Lidl have been taking market share away from Britain’s four biggest supermarkets, including Tesco PLC (LON:TSCO), J Sainsbury PLC (LON:SBRY), Morrison Supermarkets PLC (LON:MRW).
In response to the rise of Aldi and Lidl, supermarkets have cut prices and improved customer offerings.
More trading updates from supermarkets next week
Convenience stores have also added pressure on supermarkets since they benefit from being open for longer on Sundays.
Nisa, the grocery wholesaler that owns the Budgens and Londis chains, reported a 1.7% increase in sales to £277mln in the 10 weeks to 31 December. Last year, the company agreed to be taken over by The Co-operative Group for £143mln.
The Co-op’s sales increased 6.2% at established stores in the two weeks to 1 January.
Next week sees Christmas trading updates from Morrisons, Sainsbury’s, Tesco and Marks & Spencer Group PLC (LON:MKS).