Supermarket sales jump in run-up to Christmas - Worldpanel

(Sharecast News) - Supermarket sales rallied in December, industry data showed on Tuesday, as shoppers sought out bargains and grocery inflation moderated. According to Worldpanel by Numerator, take-home sales at UK grocers jumped 3.8% in the four weeks to 28 December, to a record £13.8bn.

On average, shoppers spent £476 at supermarkets during the month, up £15 on December 2024's average spend. Monday 22 December was the biggest day for grocery sales.

Inflation, meanwhile, eased slightly, to 4.3% from 4.7% in November.

Prices rose fastest in chocolate confectionary, coffee, and milk and cream, and fell fastest in household paper, sugar confectionary and household cleaners. Yet despite the dip in inflation, shoppers continued to seek out bargains.

Spending on promotions and deals reached 33.3%, the highest level since before the pandemic, while premium own label sales exceeded £1bn for the first time.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said: "Easing inflation helped to take the edge of Christmas this year, giving households a little more room to spend.

"It was a Christmas of smart savings and considered choices."

Among individual retailers, Ocado Group - which has a market share of 2.1% - was the fastest-growing, after sales surged 15% in the 12 weeks to 28 December.

Research published by rival market researcher NielsenIQ on Monday showed online was the biggest growing sales channel in December, with growth of 9.9%. Discounters also saw strong festive demand, however, according to the Worldpanel data.

Lidl posted a 10% surge in sales over the 12-week period, giving it a market share of 7.8%. Aldi's sales rose 3.9%, giving it a market share 10.1%. Tesco, the UK's biggest supermarket, and closest rival J Sainsbury also looked to have enjoyed a strong Christmas.

Sales at Tesco were up 4.3%, adding to its market share of 28.7%, while sales at Sainsbury's sparked 5.2% to 16.3%.

Waitrose, part of the John Lewis Partnership, saw sales rise 4.5%. It now has a market share of 4.7%. However, Asda saw sales slide 4.2%, while at the Co-op they eased 1.3%.

Tesco is due to publish its Christmas trading statement on Thursday along with Marks & Spencer, with Sainsbury's update due on Friday.

Unlike NIQ, Worldpanel does not include Marks & Spencer in its grocery research, as the chain has a higher proportion of clothing and general merchandising in its sales mix.