UK supermarket sales are forecasted to exceed £13bn in December, marking a historic first.
- A 2.5% rise in take-home sales ahead of Christmas is driving this growth, as reported by Kantar.
- Premium own-label products have seen increased spending with projections reaching 7% of total sales.
- December 23rd is anticipated to be the most hectic shopping day this year, according to Fraser McKevitt.
- Despite a rise in Christmas dinner costs, retailers focus on price cuts to offset inflation.
UK supermarket sales are poised to surpass £13bn during December, a record-breaking achievement attributed primarily to heightened demand for premium product lines as the holiday season approaches. The data released by Kantar indicates a 2.5% uplift in overall household sales for the four weeks leading to the 1st of December.
The inclination towards premium own-label products has markedly increased, with spending now accounting for 5% of sales, and expected to rise to nearly 7% by month’s end. This trend underscores the evolving consumer preference as households prepare for festive celebrations.
Fraser McKevitt, Kantar’s head of retail and consumer insight, noted, “Monday 23rd December is likely to be the single busiest day for supermarkets this year, although shoppers are already preparing for Christmas.” He further highlighted the doubling of sales in sweet biscuits and cheese biscuits during November, as well as early purchases of Christmas puddings by 8% of consumers.
Notably, the festive surge extends beyond groceries, impacting non-grocery items with a forecasted significant increase in general merchandise sales. These sales had already shown a 21% rise in December 2023 compared to the annual average.
However, the financial burden of a traditional Christmas dinner has escalated, costing £32.57 to feed a family of four, a 6.5% rise from the previous year, mainly due to pricier turkeys and vegetables. Despite this, grocery price inflation remains at 2.6%, as supermarkets focus on price reductions — primarily facilitated via loyalty programmes — over multibuy schemes.
Leading retailers, Tesco and Sainsbury’s, have reported growth in market shares, with Tesco reaching 28.1%, its peak since 2017, and Sainsbury’s increasing to 15.9%. Discount retailers such as Lidl and Ocado continue to perform robustly, noting significant rises in sales. Conversely, Asda is experiencing a downward trend with a 3.5% drop in year-on-year sales.
December is set to be a landmark month for UK supermarkets as sales are driven by Christmas demand and strategic pricing.