Aldi UK, the British arm of the German discount supermarket, said on Monday its sales increased 10% in the key Christmas week, driven by demand for premium ranges.
The firm, the UK's fifth biggest grocery chain, said its sales increased to almost £1 billion ($1.27 billion) in December.
Aldi, along with rival German discounter Lidl, has been winning UK market share from Britain's big four grocers - market leader Tesco, Sainsbury's, Asda and Morrisons. Its share was 7.6% in the latest industry data.
The strong growth has forced the big four to cut their own prices to better compete. Morrisons said it would cut prices on nearly a thousand products on Monday.
Premium Ranges In Demand
Aldi said its sales performance reflected a surge in demand for its premium ranges - Specially Selected and Exquisite.
"We begin the new year with great momentum as the UK’s fastest-growing supermarket and on the back of record Christmas sales," said Chief Executive Giles Hurley.
Aldi opened over 65 new stores during 2018, increasing its total estate to 827. It said it remains on course to achieve a long-term target of 1,200 UK stores by the end of 2025.
Morrisons is due to update on Christmas trading on Tuesday, followed by Sainsbury's on Wednesday and Tesco on Thursday.