Bumper festive period anticipated for retailers with grocery sales set to hit £13bn
Grocery sales are likely to hit more than £13 billion this December for the first time ever, as households stock up for Christmas.
And it is predicted that Friday 22nd December will be the busiest day for festive grocery shopping, while retailers will sell nearly 41 million brussels sprouts per day in the week leading up to Christmas. The popular festive veg is now 4.3% cheaper than 12 months ago.
According to marketing data and analytics company, Kantar, latest figures show that sales grew by 6.3% over the four weeks to 26th November 2023 to reach £11.7 billion.
The cost of a traditional Christmas dinner for four this year is up by 1.3% versus a year ago and now stands at £31.71. This tracks well below the headline grocery price inflation rate, which fell to 9.1% for the four weeks to 26th November 2023.
Head of retail and consumer insights at Kantar, Fraser McKevitt said the scene is set for a record-breaking spend this Christmas.
‘The amount of money spent on deals usually leaps in the run up to Christmas, but this year is already looking a bit different’
“The festive period is always a bumper one for the grocers with consumers buying on average 10% more items than in a typical month. Some of the increase, of course, will also be driven by the ongoing price inflation we’ve seen this year,” said Fraser McKevitt.
“While the rate at which grocery prices are rising is still well above the norm, the good news for shoppers is that inflation is continuing to come down – it dropped again in November to 9.1%. The retailers are also battling it out to offer value to consumers during this important month for trading and are doing what they can to keep prices low.”
Retailers are putting the emphasis on own-label lines and promotions to attract people through their doors, with Kantar data showing that spending on offers hit its highest level in over two years in the latest four-week period, at 28.4%.
“The amount of money spent on deals usually leaps in the run up to Christmas, but this year is already looking a bit different,” added Fraser McKevitt.
“We’re well above 2022 levels, with customers making an additional £180 million in savings this November versus 12 months ago. Brands have benefited from the boost in offers and have now edged ahead of their own-label counterparts, growing sales by 6.5% versus 6.4% for retailer lines.
“However, own-label is still doing incredibly well and premium lines especially so. These products are up by 15.4% year-on-year, with wine, chilled ready meals and fresh beef among the big winners last month. We’re likely to see a seasonal jump in the premium stuffing, sausage meat and Christmas puddings over the coming weeks.”
