This year’s Christmas dinner is expected to cost around the same as last year, despite the surge in food prices. Market experts at Worldpanel by Numerator have revealed that a traditional festive meal for four, including a turkey and all the trimmings, will average £32.46, slightly lower than last year’s £32.57. This cost reduction is noteworthy given the 4.7% overall grocery price inflation experienced last month.
Retailers have intensified their promotional activities to attract Christmas shoppers, recognizing the importance of competitive pricing for essential holiday foods. Worldpanel data shows that the average price of a frozen turkey has decreased by 3.6% to £13.52 compared to a year ago. Additionally, parsnips are now priced at 71p for four, a 0.4% decrease from last year.
Conversely, prices have risen for other Christmas dinner elements this year: cauliflower is up 4.2% to £1.22, carrots are up 5.5% to 52p, Brussels sprouts are up 3.6% to 92p, potatoes are up 1.1% to £1.67, gravy granules are 5.1% more expensive at £2.23, stuffing mix is up 6.9% to 96p, cranberry sauce costs about 10% more at 86p for four servings, Christmas pudding is up 0.8% to £3.34, and sparkling wine is 1.7% pricier at £6.51 per bottle.
Aldi, the discount grocer, has maintained its prices with a festive meal for eight costing less than £12, or under £1.50 per person. This offer, available from December 19 to Christmas Eve, includes festive vegetables that can be reduced to 8p as part of the supermarket’s Christmas Super Six promotion.
According to Worldpanel by Numerator, over 31% of supermarket purchases last month were made on promotion, slightly higher than the previous year. Fraser McKevitt, the head of retail and consumer insight, noted that retailers are striving to attract shoppers during this crucial trading period, especially with many households facing financial challenges. Despite the cost of living pressures, consumers are still indulging in small treats, with premium own-label lines gaining popularity.
While chocolate prices have increased by 18.4% compared to last year, many households purchased confectionery advent calendars in November. Additionally, a significant number of shoppers bought Champagne or sparkling wine in the past month.
Online grocer Ocado achieved a record market share of 2.2%, with sales rising by 15.8% in the last three months. However, physical stores continue to dominate the grocery sector, and the days leading up to Christmas are expected to be the busiest shopping days of the year.
Lidl experienced the largest market share gain, reaching 8.1%, while Aldi’s sales increased by 4.1% with a market share of 10.5%. Sainsbury’s saw a 5.1% sales increase, bringing its market share to 16%, whereas Asda struggled with a 4.3% decline in takings, resulting in a 11.5% market share.
Tesco remains the industry leader, with sales growing by 4.7% to nearly £10.2 billion in the three months ending November, and a market share of 28.3%.