Aldi and Lidl set to be festive winners
SOARING FOOD price inflation is expected to have boosted supermarket sales over the festive period, with Aldi, Lidl and Tesco all set to emerge as Christmas winners.
City analysts predict that all of the big British grocery groups will book growth in like-for-like seasonal sales when they report to the market in the coming weeks.
The pound’s collapse following the Brexit vote has driven up inflation which, in moderation, can help supermarkets boost their sales and profit margins.
Grocery inflation hit a fouryear high in the run-up to Christmas when it came in at 3.6 per cent, its highest level since 2013, according to data from Kantar Worldpanel.
Aldi and Lidl are expected to steal the show, with discount chain B&M also set for a bumper performance.
The German pair have notched up a series of record trading performances over the festive period in recent years, wiping the floor with established players, and have continually seized market share from the majors.
Clive Black, of Shore Capital, said: “Leading bargains group B&M Stores is expected to be an overall winner, as are Aldi UK and Lidl UK.
“The latter two are progressively shaking off their cheap and cheerful roots to become more mainstream supermarkets with a robust value bent.”
Tesco, in recovery mode under boss Dave Lewis, is tipped to be the best performer of the socalled Big Four grocery giants.
Bradford-based supermarket chain Morrisons has bounced backed under chief executive David Potts and Asda in November posted another rise in quarterly sales.
Sainsbury’s, meanwhile, revealed a nine per cent fall in halfyear profits last month and a sharp slowdown in sales growth.