British shoppers, still grappling with rising household bills and last month’s tax-hiking budget, are trying to cushion the financial blow of Christmas by spreading out their festive spending and

choosing to celebrate at home, according to the head of Aldi’s UK business.

Giles Hurley, CEO of Aldi UK, said customers are turning to earlier shopping and home dining as they feel the squeeze on discretionary income. “There’s no doubt customers are spreading their spend,” he told Reuters, noting that the discounter has already sold more seasonal goods than at the same point last year.

He added that tighter budgets are weighing on non-essential purchases and contributing to a tougher climate for the hospitality sector, as more people opt to mark the season with meals prepared at home.

Aldi and fellow German discounter Lidl have reshaped Britain’s grocery landscape over the past 20 years, driving aggressive price competition among the country’s traditional supermarket chains. Despite the challenging economic backdrop, Hurley said Aldi is poised for its “biggest ever Christmas,” buoyed in part by store expansion and inflation.

The retailer expects to sell around 49 million mince pies and 46 million pigs in blankets, along with enough prosecco to pour 17 million glasses. Hurley said the competitive pressure in the market remains intense—highlighting Aldi’s 8-pence fruit and vegetables during Christmas week and its £9.99 Nicolas de Montbart champagne. He also pointed to a full turkey dinner with trimmings for eight people priced at £12 ($15.98).

With a 10.6% share of the UK grocery market, Aldi is closing in on third-placed Asda, which holds 11.6% and has been under strain. Aldi is on track to end the year with 1,081 stores, with plans to add 80 more over the next two years as it works toward a long-term target of 1,500. Photo by Pierrette13, Wikimedia commons.