Christmas Dinner Costs Soar: Up 6.5% from Last Year
Christmas Dinner Costs Soar: Up 6.5% from Last Year.
Sales in supermarkets are projected to top £13 billion during the four weeks of December for the very first time.
The average price for a Christmas dinner for four has jumped 6.5% from last year, now sitting at £32.57, thanks to rising costs of turkey and veggies, according to the latest data from supermarkets.
This hike is way above the general grocery inflation rate of 2.6%, which has also seen an increase from November’s 2.3%, as reported by analysts at Kantar.
Even with these price hikes, supermarket sales are projected to surpass £13 billion during the four weeks of December, marking a record high.
Sales of various sweet biscuits and cheese biscuits both saw a twofold increase in November compared to October, and 8% of shoppers picked up a Christmas pudding.
Kantar also noted that spending on premium store-brand products hit 5% in the last four weeks and is projected to rise to nearly 7% in December.
Fraser McKevitt, who leads retail and consumer insights at Kantar, stated: “Monday December 23 is likely to be the single busiest day for the supermarkets this year, although there are clear signs that shoppers are already stocking up their cupboards.
“Many of us take the chance to treat ourselves at this time of year and retailers are rolling out seasonal product lines to help us celebrate in style.”
In November, promotional sales hit 30%, marking the highest level since last Christmas. This surge was fueled by deals available through supermarket loyalty cards, as shoppers opted for festive goodies like Champagne, wine, and spirits.
Tesco, the largest grocery chain in Britain, saw its market share rise to 28.1%, the best it’s been since December 2017, up from 27.4% in 2023, with a 5.2% increase in sales over the 12 weeks leading up to December.
Sainsbury’s also saw a boost, with its market share climbing by 0.3 percentage points to 15.9%, and sales through its registers were up 4.7% compared to last year.
Mr McKevitt also stated: “The number of different retailers we visit in the run up to Christmas is higher than at other times during the year, including wider high street brands like M&S.
“Just under one in three households, at 32%, bought food, drink and other groceries to have at home from M&S during the 12 weeks to December 1 and looking at grocery sales alone, spending at M&S rose by 10.4%.”
Lidl is leading the pack as the fastest-growing physical grocery store, seeing a 6.6% boost in sales. Meanwhile, Morrisons' spending climbed by 2%, capturing 8.6% of the market.
Waitrose managed to outpace the market slightly, with a 2.6% increase in spending, holding onto a 4.4% market share. Aldi also saw a 2.1% rise in spending, giving it a 10.3% share.
Co-op holds 5.5% of the market, while Asda stands at 12.3%.
As Christmas approaches, supermarket sales are set to hit a record high of £13 billion, despite the rising costs of festive essentials. The 6.5% increase in the price of a Christmas dinner reflects broader trends in food inflation, with turkey and vegetables seeing significant price hikes.
Shoppers are still indulging in premium products and festive treats, driving demand for items like Champagne, wine, and seasonal biscuits. Retailers are capitalizing on this surge, with major chains like Tesco, Sainsbury’s, and Lidl seeing strong sales growth. This holiday season, despite rising prices, consumers are embracing the spirit of celebration, fueling record-breaking retail performance.
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