UK Grocers Record Impressive December Food Sales as Inflation Falls
U.K. supermarkets celebrated a remarkable December as they witnessed their highest level of transactions since 2019, with consumers spending an astounding £13.7 billion at grocery tills during the last month of 2023, representing a 7 percent increase compared to the previous year.
According to marketing data and analytics firm Kantar, the average U.K. household spent a record-breaking £477 on groceries in December. This surge in spending was accompanied by a staggering 488 million trips to supermarkets in the four weeks leading up to December 24th, marking a significant increase from last year and the largest number of pre-Christmas visits since the onset of the Covid-19 pandemic.
Fraser McKevitt, Head of Retail and Consumer Insight at Kantar, expressed his not surprise at these figures, stating, As we expected, this Christmas was a whopper.
December 22nd stood out as the most popular shopping day of the month, with consumers making just over 25 million trips to supermarkets alone. Additionally, shoppers splurged an astonishing £803 million in grocery stores throughout December, a striking 85 percent increase compared to the average Friday of the year.
Discounters ALDI and Lidl experienced exceptional performance over the holiday season, but traditional retailers such as Tesco, Sainsbury’s, Asda, and Waitrose also enjoyed a successful period. McKevitt highlighted the success of own-label lines and premium ranges like Sainsbury’s Taste the Difference and Tesco’s Finest, which witnessed significant sales surges compared to the previous year.
While the report from Kantar indicated that U.K. grocery price inflation dropped to 6.7 percent in December, the lowest level since April 2022, executives from both Kantar and the British Retail Consortium (BRC) cautioned about ongoing economic pressures faced by consumers in 2024.
The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets, warned McKevitt.
Looking ahead, amidst the declining inflation, grocery retailers and consumers must navigate the changing landscape and adjust to the persisting challenges created by the economic climate.
As the world adjusts to these developments, the U.K. supermarkets are celebrating their exceptional performance and record-breaking sales during this festive period, providing a glimmer of hope for the retail sector.
