UK consumers spent more at supermarkets in December as grocery price inflation showed further signs of cooling, giving households modest breathing space during the crucial festive period.
Shoppers spent an average of £476 on groceries in the month, £15 more than a year earlier, according to new data from Worldpanel by Numerator. Grocery prices were 4.3% higher than a year ago, easing from November’s 4.7% rise.
The slowdown helped drive a record £13.8 billion in take-home grocery sales over the festive month, up 3.8% year on year. Nearly all shoppers – 92% – bought premium own-label products, with sales of these ranges topping £1 billion for the first time.
Fresh meat proved the biggest spending category, generating £115 million in sales, while chilled party foods such as finger food, dips and antipasti brought in £80 million.
Despite easing inflation, value remained a key focus. Promotions accounted for 33.3% of grocery sales, up from 32% last year and the highest share for December since before the pandemic in 2019.
Seasonal favourites still sold strongly even as prices rose. The typical tub of festive chocolates exceeded £5 for the first time, while average pack sizes shrank by 5% to 551 grams. Even so, sales jumped 19% in the four weeks to Christmas, with almost one million additional shoppers buying the treats.
Households also spent £36 million more on discounted fresh vegetables compared with last Christmas.
Large-format supermarkets continued to dominate, accounting for 60% of sales over the four-week period. However, discounters achieved their biggest-ever Christmas share, capturing 17% of the market.
Regional preferences were evident. Scottish shoppers were the most likely to buy seasonal chocolates, sweets and sparkling wine. Gravy granules were most popular in the north of England, while shoppers in the south showed a stronger preference for fortified wines, mince pies and Christmas puddings.
Alcohol remained a staple of festive shopping, with three-quarters of households purchasing drinks. Spending on low and no-alcohol alternatives rose by 14%, bought by 2.7 million households, although the proportion of households choosing these options slipped slightly from 9.6% to 9.5%.
Among individual retailers, Ocado Retail – the joint venture between Ocado Group and Marks & Spencer – remained the fastest-growing grocer, with sales up 15% in the 12 weeks to December 28 and a market share of 2.1%.
Lidl posted the largest gain in market share, adding 0.5 percentage points to reach 7.8%. J Sainsbury increased its share to 16.3% from 16% a year earlier, while Tesco lifted sales by 4.3% to secure a 28.7% share of the market.
Waitrose also edged ahead, increasing its share to 4.7% from 4.6% and boosting average spend per trip by 6.5%, outperforming many of its rivals. Photo by Techwords, Wikimedia commons.
