UK shoppers spent £13.7BILLION in the run up to Christmas, Kantar says

Supermarket inflation has seen its fastest monthly drop on record as the average household spent an all-time high of £477 on groceries in December, data show.

Grocery prices are now 6.7 per cent higher than a year ago, the lowest level since April 2022, and a plunge from November’s inflation of 9.1 per cent, analysts at Kantar said.

It came as supermarkets experienced their busiest Christmas since 2019, with Britons making 488million trips to the supermarkets in the four weeks to December 24, spending a record £13.7billion through the tills. 

Prices: Grocery prices are now 6.7% higher than a year ago, the lowest level since April 2022

The number of trips to supermarkets for the period was 12million higher than the previous year. 

The average household spent £28 more on groceries last month when compared to  December 2022, with total take-home sales up 7 per cent in value and the number of items bought up 2 per cent.

22 December was the most popular shopping day, with over 25million trips were made and consumers spent £803million in physical stores, 85 per cent more than the average Friday in 2023.

Online’s share of the market held steady at 11.6 per cent, as nearly one in five households received a delivery in preparation for Christmas Day.

Tesco, Sainsbury’s, Asda, Morrisons and Waitrose accounted for a combined market share of 70 per cent over the quarter to 24 December.

Down: Sales of mince pies and Christmas pudding saw sales volumes fall compared to the previous year

Supermarkets saw strong performances across their own-label lines, with sales of premium ranges like Sainsbury’s Taste the Difference and Tesco Finest rising by 11.9 per cent compared with last year to hit £790million, accounting for 5.7 per cent of all grocery sales.

Consumer appetite for the traditional Christmas dinner was strong, with sales  of parsnips, sprouts and potatoes up 12 per cent, 9 per cent and 8 per cent respectively. 

Sales of chilled gravy jumped 11 per cent, while sales of meat including pigs in blankets, sausages, hams and turkeys up by 6 per cent collectively.

However, mince pies and Christmas puddings bucked the trend, with sales volumes falling by 4 per cent and 7 per cent respectively, although fresh cream was up by 5 per cent across the month.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: ‘The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets.

‘Retailers were clearly working hard during the festive period to offer best value and win over shoppers, and promotions were central to their strategy.

‘Nearly one third of all spend in the four weeks to Christmas Eve was made on items with some kind of offer, the highest level since December 2020 and £823’million more than last year.’

Sue Davies, Which? head of food policy, said: ‘While it is very positive to see grocery inflation is slowing, the fact remains that consumers paid record amounts to put food on the table last month, and have seen their spending at the supermarket rocket since this time last year, leading to serious hardship for many.

‘As consumers still find themselves often having to spend more to get less, it is imperative that the government and supermarkets continue to do everything they can to support vulnerable customers, including by ensuring cheaper budget ranges are available in local convenience stores.’

How did the supermarkets do?

Sainsbury’s reached its highest market share since December 2020 at 15.8 per cent, pushing up its sales by 9.3 per cent. 

Tesco gained 0.1 percentage points of share to now hold 27.6 per cent of the market and grew sales by 7.5 per cent, according to Kantar.

Boost: Sainsbury’s reached its highest market share since December 2020

Lidl and Aldi continued to be the fastest growing grocers year-on-year and the discounters hit their highest ever market shares for the Christmas period, Kantar said.

Lidl increased sales by 13.8 per cent during the period, while Aldi saw growth of 9.9 per cent. Lidl’s market share rose by 0.5 percentage points to 7.7 per cent and Aldi’s grew 0.2 percentage points, meaning its market share now stands at 9.3 per cent.

Co-op’s market share stands at 5.4 per cent, marking a 3.8 per cent increase in sales since last year.

According to Kantar, Waitrose holds 4.6 per cent of the market, having seen a 1 per cent rise in the number of shoppers during the 12-week period. 

Iceland’s sales increased by 2.9 per cent, with its market share at 2.4 per cent, and Asda grew sales growth to 3.4 per cent to take 13.6 per cent of the market. 

Spending at Morrisons jumped 3.2%, with its market share now standing at 8.8 per cent, Kantar said.

Spending at online-based Ocado grew by 5.5 per cent, but its share of the market held firm at 1.7 per cent. 

This post first appeared on Dailymail.co.uk