Christmas dinner expenses are expected to remain stable this year compared to last year, despite the recent surge in food prices, according to experts. Market research conducted by Worldpanel by Numerator reveals that the average cost for a traditional turkey meal serving four individuals is estimated at £32.46, slightly lower than last year’s £32.57. This decline is noteworthy given the 4.7% inflation in overall grocery prices recorded last month.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing the significance of competitive pricing in securing consumer loyalty during the festive season. Worldpanel data shows that the price of frozen turkeys has decreased by 3.6% to £13.52 compared to the previous year, while parsnip prices have also dropped by 0.4% to 71p for four pieces.
On the flip side, the cost of certain Christmas dinner essentials has seen an increase. Cauliflower prices have risen by 4.2% to £1.22, carrots by 5.5% to 52p, Brussels sprouts by 3.6% to 92p, potatoes by 1.1% to £1.67, and gravy granules by 5.1% to £2.23. Additionally, stuffing mix is up by 6.9% to 96p, cranberry sauce by approximately 10% to 86p for four servings, Christmas pudding by 0.8% to £3.34, and sparkling wine by 1.7% to £6.51 per bottle.
Discount supermarket Aldi has maintained its prices, offering a festive meal for eight under £12, equivalent to less than £1.50 per person. This deal, available from December 19 to Christmas Eve, includes discounted festive vegetables priced as low as 8p as part of the Christmas Super Six promotion.
Worldpanel by Numerator highlights that a slightly higher percentage of supermarket purchases were made on promotion last month compared to the previous year, reflecting retailers’ efforts to alleviate the impact of rising prices on consumers.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, emphasized the resilience of consumer spending during the festive season, with households continuing to indulge in small luxuries despite financial constraints. Premium own-label product lines have seen increased popularity, with consumers allocating a portion of their budget to these treat-type items.
Although chocolate prices have surged by 18.4% compared to last year, the demand for confectionery advent calendars and sparkling wine remains strong among shoppers. Online retailer Ocado has achieved a new market share record of 2.2%, with a notable sales increase of 15.8% in the past three months. However, physical stores are still predominant in the grocery sector, with the Monday and Tuesday before Christmas anticipated to be the busiest shopping days.
Lidl experienced the most significant market share growth, gaining an additional 0.5 percentage points to reach 8.1%, while Aldi’s sales rose by 4.1%, maintaining a 10.5% market share. Sainsbury’s saw a 5.1% increase in sales, elevating its market share to 16%, whereas Asda continues to struggle, recording a 4.3% decrease in takings and holding an 11.5% market share.
Leading the industry, Tesco’s sales surged by 4.7% to nearly £10.2 billion in the three months leading up to November, expanding its market share to 28.3%.