Families can breathe a sigh of relief this holiday season as experts predict that the cost of Christmas dinner will remain stable compared to last year, despite the recent surge in food prices. Market research firm Worldpanel by Numerator reveals that the average price for a turkey and all the trimmings for four people will be around £32.46, slightly lower than last year’s £32.57. This price drop comes even as overall grocery prices have seen a 4.7% inflation rate in the past month.
Retailers are intensifying their efforts to attract Christmas shoppers, offering competitive prices on essential festive foods. Supermarkets are particularly focused on providing budget-friendly options for families during the holiday season.
According to Worldpanel, the cost of a frozen turkey has decreased by 3.6% to £13.52 compared to last year. While some items like parsnips have also seen a decrease in price, other traditional Christmas foods have experienced price increases. Cauliflower prices have risen by 4.2%, carrots by 5.5%, Brussels sprouts by 3.6%, and gravy granules by 5.1%. Additionally, stuffing mix, cranberry sauce, Christmas pudding, and sparkling wine have all become more expensive compared to the previous year.
Discount grocer Aldi has maintained its prices, offering a festive meal for eight for less than £12, equating to under £1.50 per person. Aldi’s promotion includes festive vegetables that can be purchased for as little as 8p as part of their Christmas Super Six deal running from December 19 to Christmas Eve.
Fraser McKevitt, head of retail and consumer insight at Worldpanel by Numerator, noted that retailers are striving to cater to cost-conscious consumers this holiday season. Despite financial challenges, many households are still willing to spend on small indulgences during Christmas. Premium own-label products continue to gain popularity, with consumers allocating a significant portion of their budget to these special treats.
While chocolate prices have risen by 18.4% compared to last year, the demand for confectionery advent calendars and sparkling wine remains strong among shoppers. Online grocer Ocado has achieved record market share growth, with sales increasing by 15.8% in the past three months. However, physical stores are expected to dominate the grocery sector, with the days leading up to Christmas anticipated to be the busiest shopping days of the year.
Lidl has seen the most significant market share increase, gaining an additional 0.5 percentage points to reach 8.1%. Aldi’s sales have also grown by 4.1%, maintaining a 10.5% market share. Despite a 5.1% increase in sales, Sainsbury’s market share stands at 16%, while Asda continues to struggle with a 4.3% decrease in sales, holding an 11.5% market share.
Tesco remains the industry leader, with sales growing by 4.7% to nearly £10.2 billion in the three months leading up to November. The supermarket giant now commands a market share of 28.3%.
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