Experts predict that the cost of a Christmas dinner this year will remain relatively stable compared to last year, despite the recent surge in food prices. Market analysts at Worldpanel by Numerator revealed that the average cost for a turkey and accompanying ingredients for a family of four is estimated at £32.46, slightly lower than the previous year’s £32.57. This decrease in cost comes as a surprise given the current 4.7% grocery price inflation.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing the significance of competitive pricing during the festive season. Supermarkets are vying for the attention of price-conscious consumers, particularly when it comes to essential Christmas food items.
According to Worldpanel, prices for frozen turkeys have actually decreased by 3.6% to £13.52, while parsnips are also cheaper than a year ago at 71p for four. On the flip side, cauliflower, carrots, Brussels sprouts, potatoes, gravy granules, stuffing mix, cranberry sauce, Christmas pudding, and sparkling wine have seen price increases ranging from 0.4% to 10%.
Aldi, a discount grocer, has maintained competitive prices with a festive meal for eight costing under £12 or less than £1.50 per person. This offer includes festive vegetables that can be discounted to 8p as part of the supermarket’s Christmas promotion.
Worldpanel by Numerator reports that promotions accounted for over 31% of supermarket purchases last month, slightly higher than the previous year. Retail expert Fraser McKevitt noted that retailers are adapting to consumer preferences amidst financial challenges, with a significant portion of spending focused on promotional items.
While chocolate prices have risen by 18.4% compared to last year, consumer demand remains strong, with millions purchasing confectionery advent calendars. Additionally, a notable percentage of shoppers have bought Champagne or sparkling wine in recent weeks.
Online grocer Ocado has achieved a record market share of 2.2%, experiencing a 15.8% sales increase in the past three months. However, physical stores continue to dominate the grocery sector, with the days leading up to Christmas expected to be the busiest for supermarket shopping.
Lidl saw the largest market share gain, increasing by 0.5 percentage points to reach 8.1%. Aldi’s sales grew by 4.1%, maintaining a market share of 10.5%. Sainsbury’s sales rose by 5.1%, capturing a 16% market share, while Asda struggled with a 4.3% decrease in takings, holding an 11.5% market share.
Tesco remains the industry leader, with sales growing by 4.7% to nearly £10.2 billion in the three months leading up to November, boosting its market share to 28.3%.