UK Shoppers Balance Budgets And Treats This Christmas

Britain's festive grocery shop painted a fascinating picture of household finances this Christmas, as shoppers expertly navigated rising costs by flocking to discount supermarkets while still indulging in premium treats. Aldi and Lidl celebrated their most successful Christmas yet, capturing a record share of the market. In the four weeks leading up to December 28th, these German-owned chains collectively secured a significant 16.8% slice of the UK grocery market. This surge comes as families continue to seek out better value to manage persistent household bills, with total spending on food to take home reaching £13.8 billion – an average of £476 per household. While many were hunting for bargains, some festive splurges remained a priority. Fresh meat sales hit an impressive £115 million, closely followed by chilled snacks like dips and finger foods, which brought in £80 million. The discounters' success came at the expense of some established names. Asda and the Co-op both saw their market share decline, while Lidl emerged as the fastest-growing physical supermarket. Its rapid ascent now places it less than one percentage point behind Morrisons, poised to become the UK's fifth-largest grocer. Aldi, already the fourth-largest, is hot on the heels of Asda, which saw sales drop by 4.2%. However, the story isn't just about belt-tightening. Upmarket retailer Waitrose also reported a strong performance, with sales climbing by 4.5% in the three months to late December. Online specialist Ocado, which delivers Marks & Spencer products, saw an even more impressive 15% increase, highlighting that some households still had ample funds for higher-end options and convenience. The shift to online grocery shopping overall grew by 7.5%, now accounting for 12.2% of the market. These figures reflect a nuanced approach to festive spending. Although overall spending rose, it did so at a slower pace than grocery inflation, which eased slightly to 4.3%. This suggests many shoppers actively sought cheaper alternatives, opting for supermarket own-label products or reducing the number of items in their baskets. Intriguingly, premium own-label sales soared by 9%, exceeding £1 billion for the first time in December, finding their way into 92% of shopping trolleys – a clear sign that shoppers are willing to compromise on brand for quality at a better price. Inflationary pressures were particularly felt in items like chocolate, coffee, milk, and cream. The cost of a traditional tub of chocolates, for instance, surpassed £5, even as average pack sizes shrunk by 5%. Despite the seismic shifts, Tesco maintained its position as the UK's largest grocer with a 28.7% market share, followed by Sainsbury's at 16.3%. This Christmas, it seems, was all about smart choices, balancing the desire for festive cheer with the need to keep a close eye on the purse strings. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.theguardian.com | Read original article