Experts predict that the cost of Christmas dinner this year will remain steady compared to last year, despite the recent surge in food prices. A study by market research firm Worldpanel by Numerator reveals that the average cost for a turkey and accompanying side dishes for a family of four is £32.46, slightly lower than last year’s £32.57. This decrease comes amidst an overall grocery price inflation rate of 4.7% in the past month.
Major retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing the importance of competitive pricing for essential festive foods. According to Worldpanel, the price of frozen turkeys has actually decreased by 3.6% to £13.52 compared to last year. While parsnips are also cheaper at 71p for four, other items such as cauliflower, carrots, Brussels sprouts, potatoes, gravy granules, stuffing mix, cranberry sauce, Christmas pudding, and sparkling wine have experienced price increases ranging from 1.1% to 10%.
Discount supermarket Aldi emphasizes that they have maintained affordable prices, offering a festive meal for eight for less than £12, equivalent to under £1.50 per person. This special offer is available from December 19 to Christmas Eve and includes discounted festive vegetables as part of their Christmas Super Six promotion.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, highlights that retailers are striving to cater to consumers during the holiday season, especially considering the financial challenges many households are facing. Despite rising costs, around one-third of supermarket purchases are made on promotion to help mitigate the impact of price hikes on shoppers.
While chocolate prices have increased by 18.4% compared to last year, consumer demand remains high, with five million households purchasing confectionery advent calendars in November. Furthermore, a significant number of shoppers bought Champagne or sparkling wine in the past month.
Online retailer Ocado achieved a record market share of 2.2%, with sales rising by 15.8% over the last three months. However, physical stores remain dominant in the grocery sector, with Monday, December 22, and Tuesday, December 23, expected to be the busiest supermarket shopping days ahead of Christmas.
Lidl experienced the largest market share growth, gaining an additional 0.5 percentage points to reach 8.1%. Aldi’s sales increased by 4.1%, maintaining a 10.5% share, while Sainsbury’s saw a 5.1% sales rise, reaching a 16% market share. In contrast, Asda continues to struggle, with a 4.3% decrease in takings and a market share of 11.5%.
Tesco remains the market leader, with sales growing by 4.7% to nearly £10.2 billion in the three months leading up to the end of November, expanding its market share to 28.3%.