Christmas dinner prices are expected to remain stable this year, despite the recent surge in food costs, according to experts. A study by market research firm Worldpanel by Numerator revealed that the average cost for a festive meal serving four people, including a turkey and all the traditional trimmings, is estimated to be around £32.46, slightly lower than last year’s figure of £32.57. This decrease comes as a surprise, given that grocery price inflation has been holding steady at 4.7% in recent months.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing the importance of offering competitive prices on essential holiday food items. Worldpanel data shows that the price of frozen turkeys has actually decreased by 3.6% to £13.52 compared to last year. While parsnips have also seen a price drop of 0.4% at 71p for four, other items like 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 grocer Aldi has maintained its pricing strategy, offering a festive meal for eight people at less than £12, or under £1.50 per person. This deal, available from December 19 to Christmas Eve, includes festive vegetables that can be discounted to 8p as part of Aldi’s Christmas Super Six promotion.
Worldpanel by Numerator reported that over 31% of supermarket purchases last month were made on promotion, a slight increase from the previous year. Fraser McKevitt, head of retail and consumer insight at Worldpanel, highlighted that retailers are striving to cater to cost-conscious consumers during the holiday season, with a significant portion of spending directed towards promotional items.
Despite a noticeable increase in chocolate prices, consumer demand for indulgent treats remains high, as reflected in the popularity of confectionery advent calendars and sparkling wines. Online retailer Ocado achieved a record market share of 2.2%, with sales up by 15.8% in the last three months. However, physical stores are still the primary shopping destination for groceries, with the days leading up to Christmas expected to see a surge in supermarket activity.
Lidl emerged as the top gainer in market share, with a 0.5 percentage point increase from last year, reaching 8.1%. Aldi’s sales rose by 4.1%, maintaining a 10.5% share. Sainsbury’s and Tesco also experienced sales growth, with Tesco leading the market with a 28.3% share and sales nearing £10.2 billion in the three months leading up to November. Asda, on the other hand, faced a decline in takings, with its market share at 11.5%.
In conclusion, retailers are adapting to consumer spending patterns during the festive season, offering competitive prices and promotions to attract shoppers amidst ongoing economic challenges.