This year, experts predict that the cost of Christmas dinner will remain steady compared to last year, despite the recent increase in food prices. According to market research firm Worldpanel by Numerator, the average price for a turkey and all the traditional accompaniments for four people is expected to be around £32.46, slightly lower than last year’s average of £32.57. This price stability comes as a relief for households facing challenges due to rising living costs, with grocery price inflation holding steady at 4.7% last month.
Retailers are intensifying their efforts to attract Christmas shoppers by offering competitive promotions. Supermarkets are particularly focused on providing affordable options for families seeking essential Christmas food items. Worldpanel reports that the cost of a frozen turkey has decreased by 3.6% to £13.52 compared to the previous year. Additionally, parsnips are also cheaper than a year ago, priced at 71p for four.
However, some items have seen price increases. Cauliflower prices have risen by 4.2% to £1.22, while carrots are up by 5.5% to 52p. Brussels sprouts now cost 3.6% more at 92p, potatoes are 1.1% higher at £1.67, and gravy granules have increased by 5.1% to £2.23. Other items like stuffing mix, cranberry sauce, Christmas pudding, and sparkling wine have also experienced price hikes compared to last year.
Despite these fluctuations, discount grocer Aldi has maintained affordable prices, offering a festive meal for eight people for less than £12, equating to under £1.50 per person. Aldi’s promotion includes festive vegetables that can be discounted to as low as 8p as part of their Christmas Super Six deal.
Worldpanel by Numerator notes that over 31% of supermarket purchases last month were made on promotion, slightly higher than the previous year. Retail expert Fraser McKevitt emphasizes that retailers are striving to accommodate cost-conscious shoppers during the holiday season, with promotions playing a crucial role in mitigating the impact of price increases on consumers.
Moreover, despite a significant increase in chocolate prices compared to last year, many households purchased confectionery advent calendars in November. Additionally, a considerable number of shoppers bought Champagne or sparkling wine in the past month, reflecting continued consumer spending on indulgent treats.
While online grocer Ocado achieved a record market share of 2.2% with sales up by 15.8% in the last three months, physical stores remain dominant in the grocery sector. With Christmas falling on a Thursday this year, Monday the 22nd and Tuesday the 23rd are expected to be the busiest shopping days for supermarkets.
Lidl experienced the largest market share gain, increasing by 0.5 percentage points to reach 8.1%. Aldi’s sales also grew by 4.1%, maintaining a 10.5% market share. Sainsbury’s witnessed a 5.1% sales increase, raising its market share to 16%, while Asda faced a 4.3% decline in takings, holding a market share of 11.5%.
Leading the industry, Tesco continued its dominance with sales climbing by 4.7% to nearly £10.2 billion in the three months leading to the end of November, resulting in a market share of 28.3%.