UK grocery sales hit a record £14.6 billion in the final three weeks leading to Christmas, on festive promotions and deals, NIQ reported on Wednesday.
Total till sales growth slowed at UK supermarkets, to 3.2%, in the last four weeks, ending 28 December 2024 – down from 3.7% the previous month.
After a slow start to December, food sales rallied in the final three weeks ahead of Christmas, thanks to intense discounts and increased promotions, according to NIQ.
Stores
The data reveals that, over the last four weeks, in-store visits went up by 8%, which helped in-store sales increase by 3.6%, compared to this time last year.
This came at the expense of online, where sales fell by 1.7%, as its share fell to 11.9% from 12.5% a year ago.
The timing of Christmas Eve also gave stores a boost, with Monday 23 December taking the crown as the peak shopping day.
Despite a decrease in online’s share of sales, Ocado was again the fastest-growing retailer over the four-week period, with 13.9% growth.
Discounters were the fastest-growing channel, with a 5.5% increase, as Aldi and Lidl’s combined market share lifted to 16.3% – up from 15.8% a year ago.
In contrast, trading over the last four weeks was more challenging for the convenience channel, which only saw growth of 2.4%.
Tesco also saw 4.5% growth, and number-two retailer Sainsbury’s experienced growth of 3.1%, with both retailers seeing strong increases in visits and new shoppers.
Marks & Spencer continued its momentum, with 6.8% growth, resulting in its highest-ever market share on record, of 4.8%.
NIQ data shows that over the last four weeks, shoppers put fewer items in their baskets, with an average basket value of £21.95 – down by 4.9%, compared to last year.
This suggests that shoppers are still bearing the brunt of the high cost of living, despite dissipating food inflation – now at 1.8%, compared to 7.8% a year ago.
Category Winners And Losers
Shoppers focused on products that helped them celebrate the festive season, and there was growth in sushi (20%), olives and antipasti (10%), chilled bread (12%), nuts (10%) and fresh and frozen fruit (10%).
There was also strong growth in fresh produce (7.4%), bakery (4.8%) and soft drinks (3.6%).
Sales of meat, fish and poultry were also up on last year, with value growth up by 4.4% and unit growth up by 2.1%.
Confectionery saw 13% value growth and 5.5% unit growth, while health and beauty also performed well, at 6.3% value growth.
However, sales for beers, wines and spirits fell flat, with value sales falling by 1.6% and unit growth falling by 1.3%, although sales increased by 13% for stout, perhaps influenced by the Guinness shortage in UK pubs at the end of 2024.
‘Highest Level Of Promotion’
NIQ’s head of retailer and business insight, Mike Watkins, commented on the findings, saying, “In the last four weeks, we’ve seen the highest level of promotions in the last three years, with 27% of all FMCG sales being purchased on promotion, with branded promotions at 37% of sales.
“This has no doubt helped to boost purchasing over the Christmas period.
“In particular, this was led by Tesco and Sainsbury’s, where promotional spending on FMCG increased to 35% and 34%, respectively, as these retailers engaged shoppers with big loyalty app savings.
“Overall, it was a good Christmas for most food retailers, with sales growth in line with expectations that had been set in the last three months.
“The top-line growths were helped by the return of low inflation, but also by shoppers being inclined to buy more in the final week leading up to Christmas Eve.
“However, shoppers still had to spend more money this year on household bills before buying Christmas indulgences, and this may have taken the edge off the growth in some other categories, such as alcohol, and also household.
“Looking ahead to 2025, we expect shoppers to keep managing their budgets by shopping smart and shopping around for wherever the savings are the most attractive.
“This means that shopping ‘little and often’ will continue, with omnichannel shopping becoming an even bigger consumer trend across the industry.”
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