(Alliance News) - The UK grocery sector had its busiest festive period since the onset of the Covid-19 pandemic four years ago, numbers from Kantar showed on Wednesday, while price inflation worries for consumers abated.
Kantar said grocery sales in the 12 weeks to December 24 rose 6.9% to GBP36.45 billion from GBP34.10 billion a year before. In the final four weeks of that period alone, sales totalled GBP13.7 billion.
"Supermarkets saw their highest level of transactions in December since 2019," Kantar explained.
"Britons made 488 million trips to the supermarkets over the four weeks to 24 December – 12 million more than last year and the largest number at Christmas since pre-pandemic times."
Annual grocery price inflation in December eased to 6.7% from 9.1% in the four weeks to November 26. December's figure was the tamest level since April 2022, and Kantar said it was the sharpest monthly slowdown it has ever recorded.
Kantar analyst Fraser McKevitt said: "The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets. Retailers were clearly working hard during the festive period to offer best value and win over shoppers, and promotions were central to their strategy. Nearly one third of all spend in the four weeks to Christmas Eve was made on items with some kind of offer, the highest level since December 2020 and GBP823 million more than last year."
For the full 12 weeks of the survey, the grocery inflation rate eased to 8.1% from 9.6% in the previous 12-week period.
By UK market share, Tesco PLC remained the largest grocer. Its share edged up to 27.6% during the recent 12 weeks from 27.5% a year before. Its sales rose 7.5% to GBP10.07 billion.
J Sainsbury PLC recorded market share growth to 15.8% from 15.5%. Its sales were 9.3% higher at GBP5.77 billion.
"The traditional retailers always tend to do well in the run up to Christmas and this year was no exception. Supermarkets saw especially strong performances for their own-label lines, with sales of premium ranges like Sainsbury's Taste the Difference and Tesco Finest surging by 11.9% compared with last year to hit GBP790 million – accounting for 5.7% of all grocery sales. Branded sales rose by 6.0% during the same period," Kantar's McKevitt noted.
Ocado Retail sales were 5.5% higher at GBP620 million. Its market share was unmoved at 1.7%. The online-only grocery firm is a joint-venture between Ocado Group PLC and Marks & Spencer Group PLC.
Tesco shares were up 1.3% to 297.00 pence each in London on Wednesday morning. Sainsbury's shares were 1.7% higher at 303.90p. Ocado traded 1.6% lower at 727.60p, while M&S was up 1.4% at 278.22p.
Aldi and Lidl recorded market share growth. Aldi, the fifth most popular UK supermarket, achieved a market share of 9.3%, up from 9.1%. Lidl's market share shot up to 7.7% from 7.2%. Aldi recorded sales growth of 9.9%, while Lidl saw a 14% jump.
The discounting duo on Tuesday revealed record Christmas trading in the UK. Aldi hailed its "best ever" Christmas performance, with UK sales of more than GBP1.5 billion for the first time in the month leading up to Christmas.
The chain, which has more than 1,010 stores across the UK, said sales rose by 8% on a year before in the four weeks to December 24. Its fellow German-owned rival Lidl also claimed its best Christmas yet, reporting annual UK sales growth of 12% in the four weeks to December 24.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Tesco (TSCO)
Sainsbury's (SBRY)
Ocado (OCDO)
Marks & Spencer (MKS)