A Christmas shaped by careful spending – and big wins for the discounters

Happy New Year.

Christmas 2025 delivered the biggest four‑week shopping period the UK has ever seen, with shoppers spending £19.6 billion, according to NielsenIQ. But behind that headline number sits a more cautious story. People spent more money overall, yet bought slightly fewer items, and they relied more heavily on promotions and online shopping to manage their budgets.

NielsenIQ reports that unit sales dipped by 0.2%, even as total spend rose. Promotions also increased in December, climbing from 25% to 27%, showing that retailers leaned on discounts to tempt shoppers. Meanwhile, online grocery grew nearly 10%, making it the fastest‑growing channel of the season. Major supermarkets saw around 3% growth, but the real momentum came from the discounters.

Both Lidl and Aldi posted record Christmas results, fuelled by shoppers looking for strong value without giving up festive treats. Lidl saw sales jump 10%, taking more than £1.1 billion in the four weeks to Christmas Eve and attracting nearly 51 million customers. Aldi also broke records, hitting £1.65 billion in Christmas sales and processing 57 million transactions. Their success reflects a simple truth: when budgets are tight, shoppers flock to retailers who can offer low prices and reliable quality.

The season also showed how shoppers are mixing value‑driven behaviour with selective indulgence. People were happy to save on everyday items but still spent on premium party food, special desserts and celebratory drinks. 

Promotions played a big role in nudging shoppers to buy, but they also put pressure on retailers’ margins. With households watching their spending closely, discounts became a key tool to drive sales, even if they made profitability harder to protect.

Online shopping continued its steady rise, with convenience now a basic expectation rather than a bonus. Retailers that offered smooth click‑and‑collect services, reliable delivery and easy online browsing were rewarded with stronger performance. 

Looking ahead to 2026, retailers and suppliers will need to stay flexible. Shoppers want both value and small luxuries, so ranges must reflect that balance. Promotions should be more targeted rather than blanket discounts. Operational efficiency — from stock management to waste reduction — will be essential to protect margins. And clear communication about quality, sustainability and provenance will help justify premium pricing where it matters.

Christmas 2025 showed that British shoppers are still willing to celebrate, but they’re doing it on their own terms: carefully, selectively and with an eye on value. 

• Rodney Jack, editor, Food & Drink Technology. Keep in touch via email: [email protected] Twitter: @foodanddrinktec or LinkedIn: Food & Drink Technology magazine.