Grocery price inflation held steady at 4.7% over the month to 30 November, new figures from Worldpanel by Numerator show, while take-home sales have risen below inflation by 3.4% over those four weeks.
Retailers are also ramping up investment in promotions to encourage shoppers through their doors as the march to Christmas gets underway, with sales expected to exceed £13.6bn in December. The latest data for November shows 31.2% of spending was on promoted items - up from 30% this time last year.
Fraser McKevitt (left), head of retail and consumer insight at Worldpanel, said: “Retailers are pulling out all the stops to win shoppers over as they gear up for one of the most important trading periods of the year.
“One in five households tell us they’ve been struggling financially. With the cost of living still biting for many this Christmas, just under one third of all spending is on promotion as supermarkets find ways to shield shoppers from the impact of price rises.”
The emphasis on offers and lower pricing means the cost of a Christmas dinner for four is a few pence cheaper than last year, at £32.46.
However, retailers know that as well as keeping an eye on budgets, consumers also want to indulge during the festive season. McKevitt added: “Retailers are savvy to the fact that at Christmas especially – even when times are tough – consumers still find the space in their wallet to spend on small treats.
“In fact, we’ve seen that right through the cost-of-living crisis as people have found new, more affordable ways to indulge in what we call the ‘pick-me-up pound’. The rise and rise of premium own label lines bears this out, with one in every £20 now spent on these treat-type products.”
While chocolate prices are up 18.4% on this time last year, it hasn’t stopped five million households putting a confectionery advent calendar in their basket in November. Similarly, just over one in ten shoppers fancied a festive tipple and bought a bottle of Champagne or sparkling wine over the last month.
Sales at Asda now account for 11.5% of the market, while Morrisons holds 8.3% and Co-op’s share stands at 5.3%, Worldpanel also revealed.
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