Christmas dinner prices are expected to remain stable this year, defying the recent surge in food costs, according to experts. Despite a 4.7% grocery inflation rate, market research firm Worldpanel by Numerator revealed that the average cost of a turkey and accompanying items for a family of four will be around £32.46, slightly lower than last year’s £32.57.
Retailers have intensified their promotions to attract Christmas shoppers, understanding that price-conscious consumers will prioritize affordability for essential holiday food items. The report indicates that frozen turkey prices have dropped by 3.6% to £13.52 compared to the previous year. Some items like parsnips have also seen a decrease in price, down by 0.4% at 71p for a set of four.
Conversely, prices have risen for certain items essential for Christmas dinner. Cauliflower costs 4.2% more at £1.22, carrots are up by 5.5% to 52p, Brussels sprouts increased by 3.6% to 92p, potatoes by 1.1% to £1.67, and gravy granules by 5.1% to £2.23. Other items like stuffing mix have seen a 6.9% rise to 96p, while cranberry sauce is about 10% more expensive at 86p for four. Additionally, Christmas pudding prices have increased by 0.8% to £3.34, and sparkling wine costs 1.7% more at £6.51 per bottle.
Discount supermarket Aldi has maintained its prices, offering a festive meal for eight at less than £12, translating to under £1.50 per person. This deal, available from December 19 to Christmas Eve, includes festive vegetables that could be reduced to 8p as part of the Christmas Super Six promotion.
Worldpanel by Numerator reports that over 31% of supermarket purchases last month were on promotion, slightly higher than the same period last year. Retailers are strategically leveraging promotions to attract shoppers during this crucial festive season amidst ongoing financial challenges for many households.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, highlighted that retailers are adapting to consumer spending patterns, especially during the festive period, by offering affordable indulgences. Premium own-label products are gaining popularity, with consumers allocating a portion of their budget to treat-type items.
While chocolate prices have risen by 18.4% compared to last year, consumer demand remains strong, with millions purchasing confectionery advent calendars in November. Additionally, a noticeable number of shoppers bought Champagne or sparkling wine in the past month.
Online retailer Ocado achieved a record 2.2% market share with a sales growth of 15.8% over the last three months. However, physical stores continue to dominate the grocery sector, with an expected surge in supermarket shopping on December 22 and 23 due to Christmas falling on a Thursday this year.
Lidl experienced the most significant market share increase, gaining an additional 0.5 percentage points to reach 8.1%. Aldi also saw a 4.1% sales increase, maintaining a market share of 10.5%. Sainsbury’s sales rose by 5.1%, pushing its market share to 16%, while Asda faced a 4.3% decrease in takings, holding a market share of 11.5%.
Tesco remains the leading retailer, with sales growing by 4.7% to nearly £10.2 billion in the three months leading up to November, increasing its market share to 28.3%.
