Experts predict that the cost of Christmas dinner will remain stable this year, despite the recent increase in food prices. Market research conducted by Worldpanel by Numerator reveals that the average cost of a traditional festive meal for four people, including a turkey and all the trimmings, is estimated at £32.46, slightly lower than last year’s average of £32.57. This price reduction is noteworthy considering the overall grocery price inflation rate of 4.7% recorded last month.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing that price-conscious families prioritize affordability when purchasing essential holiday food items. The research indicates that the price of a frozen turkey has decreased by 3.6% to £13.52 compared to last year. Additionally, parsnips are 0.4% cheaper at 71p for four servings.
However, some items have experienced price increases. For instance, cauliflower prices rose by 4.2% to £1.22, while carrots and Brussels sprouts increased by 5.5% to 52p and 3.6% to 92p, respectively. Potatoes are up by 1.1% to £1.67, gravy granules by 5.1% to £2.23, stuffing mix by 6.9% to 96p, and cranberry sauce by approximately 10% to 86p for four servings. The cost of Christmas pudding has also risen by 0.8% to £3.34, and sparkling wine is now priced at 1.7% higher than last year, at £6.51 per bottle.
Discount grocer Aldi has maintained its prices, offering a festive meal for eight people for less than £12, equivalent to under £1.50 per person, as part of its Christmas Super Six promotion running from December 19 to Christmas Eve. Worldpanel by Numerator reports that over 31% of supermarket purchases last month were made during promotional periods, slightly higher than the previous year’s figure of 30%.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, highlighted the efforts of retailers to attract shoppers during the crucial holiday season. Despite financial challenges faced by many households, consumer spending on small luxuries remains relatively consistent. Premium own-label products are gaining popularity, with approximately one in every £20 spent on such indulgences.
While chocolate prices have increased by 18.4% compared to last year, consumer demand for confectionery advent calendars and sparkling wine remains strong. Online grocer Ocado achieved a record market share of 2.2%, with a sales growth of 15.8% over the past three months. Physical stores are expected to dominate the grocery sector during the busy shopping days leading up to 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 market share of 10.5%. Sainsbury’s witnessed a sales increase of 5.1%, elevating its market share to 16%, while Asda struggled with a 4.3% decrease in sales, resulting in a market share of 11.5%. Tesco remains the industry leader, with sales growing by 4.7% to nearly £10.2 billion in the three months leading up to November, leading to a market share of 28.3%.