Experts predict that the cost of Christmas dinner will remain stable this year, with prices similar to last year despite the recent increase in food prices. Market research conducted by Worldpanel by Numerator reveals that the average cost for a turkey and accompanying items for a family of four is £32.46, slightly lower than last year’s £32.57. This decrease comes amid a 4.7% inflation rate in overall grocery prices.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing that price-sensitive households are prioritizing affordability for essential holiday food items. According to Worldpanel, the price of frozen turkeys has decreased by 3.6% to £13.52 compared to a year ago. Some items like parsnips are also cheaper than last year, priced at 71p for four.
Conversely, several Christmas dinner components have experienced price hikes, including cauliflower (+4.2% to £1.22), carrots (+5.5% to 52p), Brussels sprouts (+3.6% to 92p), potatoes (+1.1% to £1.67), gravy granules (+5.1% to £2.23), stuffing mix (+6.9% to 96p), cranberry sauce (+10% to 86p for four), Christmas pudding (+0.8% to £3.34), and sparkling wine (+1.7% to £6.51 per bottle).
Discount grocer Aldi maintains affordable prices, offering a festive meal for eight under £12 or less than £1.50 per person. This deal is available from December 19 to Christmas Eve, featuring discounted festive vegetables as part of the Christmas Super Six promotion.
Worldpanel noted that over 31% of supermarket purchases last month were on promotion, a slight increase from the previous year. Fraser McKevitt, head of retail and consumer insight at Worldpanel, highlighted retailers’ efforts to cater to cost-conscious consumers during the holiday season, acknowledging the financial challenges faced by many households.
Despite an 18.4% rise in chocolate prices, consumer demand remains strong, with five million households purchasing confectionery advent calendars in November. Additionally, over 10% of shoppers bought Champagne or sparkling wine in the last month.
Online grocer Ocado achieved a record market share of 2.2%, with sales growing by 15.8% in the past three months. Physical stores continue to dominate the grocery sector, with Monday 22nd and Tuesday 23rd expected to be the busiest supermarket shopping days due to Christmas falling on a Thursday this year.
Lidl experienced the largest market share gain, adding 0.5 percentage points to reach 8.1%. Aldi’s sales increased by 4.1%, maintaining a 10.5% market share. Sainsbury’s saw a 5.1% sales growth, reaching a 16% market share, while Asda struggled with a 4.3% sales decline and an 11.5% market share.
Leading the industry, Tesco reported a 4.7% sales growth to nearly £10.2 billion in the three months ending November, boosting its market share to 28.3%.