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  • 📈 Lidl’s Billion-Pound Christmas Bonanza!

📈 Lidl’s Billion-Pound Christmas Bonanza!

Lenovo Nears £1bn, Huawei Hits Snag

January 02, 2025

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Lidl’s Billion-Pound Christmas Bonanza!

  • Lenovo Nears £1bn, Huawei Hits Snag

  • Banks Face £400m Bill for Cash Lifeline!

The summary: Lidl’s record-breaking Christmas sales, soaring profits, and growing shopper loyalty prove it’s stealing the show in Britain’s supermarket shake-up with unbeatable value and festive flair.

The details:

  • Festive Feast Bonanza: Lidl raked in over £1bn in December sales for the first time, selling 16m pigs in blankets, 2m litres of gravy, and turkeys at a gobbling rate of one per second. Champagne sales fizzed up by 25%.

  • Snapping at Morrisons’ Heels: With a 7% festive sales boost, Lidl edges closer to claiming the UK’s #5 supermarket crown, as 2 million bargain hunters stormed its aisles on the busiest day, 23 December.

  • Pennywise Powerhouse: The discounter saw a near 17% revenue leap last year, hitting £10.9bn. Profits rebounded to £43.5m, thanks to store upgrades, expanded ranges, and a loyalty scheme boom.

  • Lidl's Big Ambitions: CEO Ryan McDonnell is eyeing more stores and market growth, despite looming price hikes from government policies. With 60% of Brits visiting Lidl last year, they’re not stopping now.

Why it matters: Lidl’s booming sales and growing market share show how cash-strapped Brits are swapping posh brands for budget brilliance without skimping on festive feasts. Their success in outpacing rivals and boosting profits highlights the seismic shift in shopping habits toward value-driven choices. As Lidl eyes expansion and braces for price pressures, it’s clear the discounter is reshaping the supermarket landscape one bargain at a time.

The summary: Lenovo’s stellar UK sales and global dominance highlight the power of innovation and pandemic-era upgrades, while Huawei’s sharp decline is a cautionary tale of geopolitics reshaping the tech landscape.

The details:

  • Close but no cigar: Lenovo UK’s sales soared to an impressive £982.8m in the year ending March 2024—just shy of the £1bn milestone, with pre-tax profits inching up from £13.3m to £14m.

  • Pandemic PC purge: Desktop and laptop sales got a boost as businesses refreshed their lockdown-era tech, keeping Lenovo snug at the top of the global PC leaderboard with enviable margins.

  • Innovate and elevate: The company’s game plan? Premium products, rapid growth in lucrative segments, and customer-centric innovation to secure long-term success.

  • A tale of two giants: While Lenovo thrives, Huawei struggles—UK sales plunged to £229.56m in 2023, continuing a dramatic nosedive since 2019, as government restrictions tighten the noose.

Why it matters: Lenovo’s near-billion-pound performance shows the UK’s appetite for shiny new tech hasn’t waned, even as businesses tighten their belts elsewhere. Meanwhile, Huawei’s decline underscores the stark consequences of geopolitical tensions, leaving one titan’s rise mirrored by another’s fall. It’s a tale of tech resilience, innovation, and a reminder that global politics can hit closer to home than your Wi-Fi signal.

The summary: The Post Office is raising fees for banks to secure a fairer deal for postmasters, keep cash flowing in an increasingly cashless world, and bounce back from its troubled past, all while giving high street lenders a good reason to cough up!

The details:

  • "Show Us the Money" Moment: The Post Office is asking banks to cough up between £350m and £400m annually—quite a leap from the current £250m—to use its network. A deal could be inked by autumn, giving the banks all spring to decide if they fancy the price tag.

  • Cash Is King (Still): With 11,500 branches, the Post Office remains the lifeline for cash transactions, handling a whopping £39bn in deposits and withdrawals last year. Handy when 6,000 bank branches have done a disappearing act in recent years.

  • Postmasters Get a Boost: The extra cash will partly fund better pay for postmasters, courtesy of chairman Nigel Railton's November promise to keep them sweet and motivated.

  • Fixing a Tarnished Legacy: After the Horizon IT scandal turned into a PR disaster, the Post Office’s new leadership is keen to rebuild trust and reduce reliance on government subsidies. Negotiations, however, are strictly hush-hush.

Why it matters: The Post Office’s cash grab from banks highlights the struggle to keep physical cash alive in a world rushing to go digital. With bank branches vanishing faster than a free pint on a Friday, its 11,500-strong network is a lifeline for millions. At the heart of it all, postmasters might finally see fairer pay, while the Post Office tries to shake off its scandal-plagued past and secure a future that's not held together with duct tape and hope.