Christmas dinner costs are expected to remain steady this year compared to last year, despite the recent surge in food prices, according to experts. Market research firm Worldpanel by Numerator revealed that the average price for a turkey and accompanying items for four people is about £32.46, slightly lower than last year’s £32.57. This price stability is notable as grocery price inflation has been at 4.7% in recent months.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing that many families are price-sensitive when it comes to essential holiday food items. Worldpanel data shows that the cost of a frozen turkey has actually decreased by 3.6% to £13.52 compared to the previous year. Additionally, parsnips are 0.4% cheaper at 71p for four portions.
However, prices for certain items have risen, such as cauliflower by 4.2% to £1.22, carrots by 5.5% to 52p, Brussels sprouts by 3.6% to 92p, potatoes by 1.1% to £1.67, and gravy granules by 5.1% to £2.23. Stuffing mix is up 6.9% to 96p, while cranberry sauce costs about 10% more at 86p for four servings. Christmas pudding is up by 0.8% to £3.34, and sparkling wine prices have increased by 1.7% to £6.51 per bottle.
Discount supermarket Aldi has maintained lower prices, offering a festive meal for eight people at less than £12, averaging under £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 by Numerator reports 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, notes that retailers are striving to engage shoppers during this crucial trading period. Despite financial challenges for many households, consumers are still allocating a portion of their budget for small indulgences, with premium own-label products gaining popularity.
While chocolate prices have risen by 18.4% compared to last year, five million households purchased confectionery advent calendars in November. Additionally, over 10% of shoppers bought Champagne or sparkling wine in the past month.
Online grocer Ocado has achieved a record market share of 2.2%, with sales growing by 15.8% over the last three months. However, physical stores remain dominant in the grocery sector, with the days leading up to Christmas expected to be the busiest shopping period.
Lidl experienced the largest market share growth, gaining an additional 0.5 percentage points to reach 8.1%. Aldi’s sales increased by 4.1%, maintaining a 10.5% market share. Sainsbury’s sales rose by 5.1%, reaching a market share of 16%. In contrast, Asda continues to struggle with sales down by 4.3%, holding an 11.5% market share.
Tesco remains the leading retailer, with sales growing by 4.7% to nearly £10.2 billion in the three months ending in November. Its market share has increased to 28.3%.