UK shoppers splurge on festive food and drink - NIQ
By Abigail Townsend
Date: Wednesday 08 Jan 2025
(Sharecast News) - UK consumers splashed out a record £14.6bn on food and drink in the run-up to Christmas, industry research showed on Wednesday.
According to consumer research firm NIQ, overall total till sales growth was 3.2% in the four weeks to 28 December.
That was down on November's growth of 3.7%. However, after a slow start to the month food sales rallied, boosted by discounts and increased promotional activity.
The timing of Christmas Eve further helped, with Monday 23 December the peak shopping day, NIQ noted.
Mike Watkins, UK head of retailer and business insight at NIQ, said: "In the last four weeks we've seen the highest levels of promotions in the last three years, with 27% of all fast-moving consumer goods sales being purchased on promotion.
"This has not doubt helped to boost purchasing over the Christmas period."
Among individual retailers, online only grocer Ocado was the fastest growing retailer over the four weeks, despite the popularity of in-person shopping, with sales soaring 13.9%.
Hard discounters Aldi and Lidl also fared well, with sales growth of 4.4% and 8.5% respectively.
Tesco, the UK's biggest grocer, reported a 4.5% uplift in sales while J Sainsbury saw a 3.1% improvement. Asda continued to struggle, however, with sales falling 4.2%.
Across the sector, in-store sales rose by 3.6% while in-store visits increased 8%.
Watkins said: "Overall it was a good Christmas for most food retailers.
"The topline growth was helped by the return of low inflation but also by shoppers being including to buy more in the final week leading up to Christmas Eve.
"However, shoppers still had to spend this year on household bills before buying Christmas indulgences, and this may have taken the edge of the growth in some categories."
On Tuesday, retail consultancy Kantar said sales had risen 2.1% in the four weeks to 29 December, with the average household spending on take-home groceries reaching £460.
Ocado was also Kantar's big winner, with sales up 9.6%.
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