Aldi and Lidl
Discounters Aldi and Lidl spillover effect
Although Aldi and Lidl are not FTSE-listed grocers, their continued share gains through 2025 may have influenced broader sector dynamics.
Pressure from discounters has nudged larger grocers to compete more aggressively on price and promotions, particularly in Christmas centrepiece and family meal categories.
This competitive environment appears to have supported overall basket sizes across major retailers.
Aldi UK reported a 3% rise in festive sales to £1.65 billion in the four weeks to Christmas Eve 2025, driven by strong demand for its premium own-label range and a 5% weekly growth.
Rival discounter Lidl GB saw a 10% increase in festive sales, highlighting strong festive performance across grocers.
Forward guidance crucial for 2026 outlook
Looking ahead, investors and analysts will scrutinise how these trading trends translate into full-year performance and what they imply for 2026 guidance.
Tesco’s ability to defend and grow market share through pricing strategies will be weighed against ongoing cost challenges, while M&S’s focus on premium product offerings and store renewal will be assessed for sustainability beyond the Christmas spike.
For Sainsbury’s, continued execution of value-led initiatives will be key to delivering on profit guidance.