Lidl follows Aldi in promising “the lowest grocery prices” as

Lidl grew revenues over the festive period whilst reinforcing its pledge to provide the market’s cheapest goods – a day after its fellow German rival Aldi vowed the same.

British household budgets are being squeezed, particularly through energy and food price inflation.

“As inflation continues to rise, I want to reassure each and every one of our customers that we remain resolute in our promise of being the destination for the lowest grocery prices in the market,” said chief executive Christian Hartnagel.

Yesterday, Hartnagel’s counterpart at Aldi also promised to “always offer the lowest prices for groceries, no matter what.”

The deep discounting is a concern amongst analysts with an eye on the supply chain.

“Are we entering a stage now where deep discounting in certain areas of the market represents a form of market failure due to the damage into the supply chain, especially farming?” questioned Shore Capital analyst Clive Black.

Lidl, which is Britain’s seventh-largest supermarket with a market share of 6.3%, saw sales grow 2.6% year-on-year in the four weeks ended 26 December, compared with 21% in the same period in 2019 prior to the pandemic.

Lidl set a target in November to have 1,100 British stores by 2025, some 210 more than what it had at the time. 

Whilst able to take market share online sales are seen to be lagging behind the strong in-store performance.