Supermarket chain Aldi proves to be growing in popularity as latest figures reveal a 15% increase in sales during December 2016.
In an attempt to compete with high class retailers such as Marks and Spencer and Waitrose, they recently launched their own premium product range which has been a great success according to recent reports. They are that confident with their latest venture that they are predicting a profit of £750m in 2017.
Last year, Aldi opened 70 new shops throughout the United Kingdom, and will be opening a further 70 later on in the year.
Marks and Spencer, Morrison’s, Sainsbury’s and Tesco will report their figures this week.
Verdict Research analyst Matt Walton claims:
“Aldi is strategically positioned to continue with its success in 2017. Their main focus is on price and value which is what customers are looking for during this current economic climate.”
Clothing retailer Next reported disappointing sales during the Christmas period and are fearful that conditions were not going to get any better during 2017. They have also experienced a 20 % loss in shares.
Marks and Spencer publish their trading update on Thursday, analysts are confident that they will have made an improvement from their abysmal 2015 Christmas sales.
Morrison’s will release their Christmas sales period figures on Tuesday, and Tesco will release theirs on Thursday.
The payment card company Visa suggests that the last three months of 2016 saw the highest quarterly growth in consumer spending in two years.
Visa’s research is an overview on card and cash spending; its results discovered that there has been a yearly increase in spending habits of 2.8% in the fourth quarter.
The month of December saw an increase in spending of 2.6%. With online sales increasing by 5.5% and brick and mortar shops experiencing a disappointing 0.7%.
One of the highest sectors to experience growth were bars, restaurants and hotels with a 7.3% increase.
The highest sector to experience growth was the experience sector as more consumers traveled to visit family and friends, and Christmas markets.
Photo credit: Paulo Rená da Silva Santarém