- December grocery sales hit £13.7 billion
- Volume sales back to positive growth
- Sainsbury’s last month’s big winner
It was a Christmas to remember for the big supermarket groups as grocery sales in the run-up to 25 December hit a record £13.7 billion according to marketing data and analytics group Kantar.
The average UK household spent £477 during the month, £28 more than in December 2022 and a new high for the period, although almost a third of spending was on items with some kind of promotional offer, showing shoppers are still keeping a tight hold on their purse strings.
WINNER WINNER, TURKEY DINNER
As well as registering record till receipts last month, the supermarkets saw the number of items sold rise by 2%, the first increase in volume sales since mid-2021, suggesting shoppers finally feel confident enough to add a few extra goodies to their baskets if the price is right.
Appetite for traditional Christmas dinner ingredients was ‘particularly strong’ according to Kantar, with sales of festive meats including turkeys and pigs in blankets up by 6% while volumes sales of parsnips, sprouts and potatoes were up by 12%, 9% and 8% respectively.
In contrast, mince pies and Christmas puddings were less popular than usual with sales volumes down 4% and 7% respectively.
Close to a third of spending was on items with some kind of offer, the highest level since December 2020 and £823 million more than the previous year, but demand for supermarket own-label lines was ‘especially strong’ according to Kantar.
Moreover, customers were happy to push the boat out last Christmas with sales of premium ranges like Tesco’s (TSCO) Finest and Sainsbury’s (SBRY) Taste the Difference leaping nearly 12% to £790 million or 5.7% of all grocery spending.
SAINSBURY’S TAKES THE CROWN
While the German discount duo of Aldi and Lidl recorded their highest share of Christmas sales at a combined 17%, that figure was almost a full percentage point lower than their market share six months earlier.
In contrast, the ‘Big Four’ – comprising Asda, Morrison, Sainsbury’s and Tesco – scooped up 70% of the market in the 12 weeks to 24 December.
Traditional supermarkets tend to do well at Christmas, none more so than Sainsbury’s which not only recorded the best growth at 9.3% - against an increase of 6.9% for the sector as a whole - but also posted its highest market share since December 2020 at 15.8%.
Food-price inflation for the 12-week period was 8.1%, but in the four weeks to Christmas it dropped to 6.7% against 9.6% in November, the fastest month-on-month drop Kantar has recorded and the lowest month rate since April 2022, which bodes well for the next official inflation report on 17 January.
