Christmas dinner prices are expected to remain stable this year, despite the recent surge in food costs, according to experts. Market research conducted by Worldpanel by Numerator revealed that the average cost of a turkey and all the traditional accompaniments for a family of four will be around £32.46, slightly lower than last year’s £32.57. This decrease comes amid a 4.7% grocery price inflation rate in the previous month.
Retailers have intensified their promotional efforts to attract Christmas shoppers, recognizing the importance of competitive pricing for essential festive foods. The study by Worldpanel indicated that frozen turkey prices have dropped by 3.6% to £13.52 compared to last year, with parsnips also costing less at 71p for four.
Conversely, some items have seen price increases from the previous year, including cauliflower (up 4.2% to £1.22), carrots (up 5.5% to 52p), Brussels sprouts (up 3.6% to 92p), potatoes (up 1.1% to £1.67), gravy granules (up 5.1% to £2.23), stuffing mix (up 6.9% to 96p), cranberry sauce (up around 10% to 86p for four), Christmas pudding (up 0.8% to £3.34), and sparkling wine (up 1.7% to £6.51 per bottle).
Discount supermarket Aldi has maintained its prices, offering a festive meal for eight at less than £12, equating to under £1.50 per person. This special deal is available from December 19 to Christmas Eve, including discounted festive vegetables priced as low as 8p as part of Aldi’s Christmas Super Six promotion.
Worldpanel by Numerator noted that promotional activities in supermarkets have slightly increased, with over 31% of purchases made on promotion last month. Fraser McKevitt, head of retail and consumer insight, emphasized that retailers are striving to attract customers during the crucial holiday shopping season, especially as many households continue to face financial challenges.
Despite a notable increase in chocolate prices (up 18.4% from the previous year), consumer spending on indulgent items like confectionery advent calendars and Champagne or sparkling wine remains strong. Online grocer Ocado experienced a record market share of 2.2% with a sales surge of 15.8% over the last three months, though physical stores still dominate the grocery sector.
Lidl achieved the largest market share gain, rising by 0.5 percentage points to reach 8.1%, while Aldi’s sales grew by 4.1% with a consistent 10.5% market share. Sainsbury’s saw a 5.1% sales increase, elevating its market share to 16%, whereas Asda continues to struggle with a 4.3% decrease in takings, holding an 11.5% market share.
Leading the industry, Tesco saw a 4.7% sales growth to nearly £10.2 billion in the three months ending November, resulting in a market share increase to 28.3%. The upcoming Christmas period, falling on a Thursday this year, is expected to drive peak supermarket traffic on December 22nd and 23rd.
