Take-home grocery sales in the UK increased by 2.5% in the four weeks to 1 December 2024, as shoppers prepared for Christmas, according to the latest data from Kantar.
Supermarket sales are expected to continue growing, exceeding £13 billion (€15.7 billion) over the four weeks of December, Kantar added.
Fraser McKevitt, head of retail and consumer insight at Kantar, stated, “Monday 23 December 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.”
Christmas Trends
The cost of an average Christmas dinner for four has increased by 6.5%, to £32.57, driven by the price of turkey and Christmas vegetable staples.
Overall grocery price inflation remained steady, at 2.6%, as grocers focused on low prices over multibuy deals.
McKevitt explained, “Sales on promotion reached 30% in November – the highest since Christmas last year. It’s retailer price cuts, often accessed through loyalty cards, that are really driving this.
“While multibuy promotions have stayed flat, spending on price-cut offers has grown by 14%, worth £355 million more than last year. Shoppers are grabbing the chance to spend that little bit more than usual on Christmas specials, and champagne, wine and spirits saw the biggest levels of buying on deal.”
Sales of general merchandise are also predicted to get a boost this year.
In December 2023, spending on non-grocery items in UK supermarkets increased by 21%, compared to the monthly average for that year, Kantar added.
Top Retailers
Tesco emerged as the UK’s top retailer, with a market share of 28.1% – its highest since 2017. Sales grew by 5.2% in the 12 weeks ending 1 December 2024.
Sainsbury’s market share increased by 0.3 percentage points, to 15.9%, and spending through its tills was 4.7% higher than last year, the data showed.
The combined market share of Tesco and Sainsbury’s reached 44% in the latest period.
Kantar’s McKevitt added, “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 1 December, and looking at grocery sales alone, spending at M&S rose by 10.4%.”
Other Retailers
Online retailer Ocado outpaced the total online market (+3.6%), with sales growth of 8.7% and a 1.8% share of the market.
Shoppers spent an additional £4.2 billion (€5.1 billion) on the channel in the latest 12 weeks.
Morrisons acquired 8.6% of the market, with shoppers spending 2.0% more at the retailer.
The retailer’s average transaction value increased by 4.8% over the 12 weeks, helped by robust online sales.
Waitrose grew slightly ahead of the market, with spending up by 2.6% and a market share of 4.4%.
Aldi retained a market share of 10.3%, with spending up by 2.1%, while Iceland held 2.2% of the market, the Co-op held 5.5%, and Asda held 12.3%.
