Experts predict that the cost of Christmas dinner this year will remain steady compared to last year, despite the significant rise in food prices. Market research company Worldpanel by Numerator reveals that the average cost for a turkey and all the traditional accompaniments for a family of four will be around £32.46, slightly lower than last year’s £32.57. This price stability comes even as overall grocery price inflation has stayed at 4.7% in recent months.
Retailers have increased promotional offers to attract Christmas shoppers, recognizing that price-conscious consumers will be prioritizing affordability for their holiday meals. Worldpanel data shows that the price of a frozen turkey has actually decreased by 3.6% to £13.52 compared to last year. Some items like parsnips have also seen a slight price drop, while others such as cauliflower, carrots, Brussels sprouts, potatoes, and various condiments have experienced price hikes.
Discount retailer Aldi has maintained competitive prices, offering a festive meal for eight people for less than £12, making it an economical choice for holiday gatherings. Worldpanel by Numerator reports that over 31% of supermarket purchases last month were made on promotion, indicating a strong focus on value for consumers.
Fraser McKevitt, head of retail and consumer insight at Worldpanel, highlights that retailers are striving to cater to consumers during the holiday season, with many households facing financial challenges. Despite the cost of living concerns, shoppers are still indulging in small luxuries, contributing to the popularity of premium own-label products. While chocolate prices have risen, consumer demand for festive items like advent calendars and sparkling wine remains robust.
Online grocer Ocado has achieved record market share growth, reflecting the trend towards online shopping. However, physical stores are expected to see high footfall in the days leading up to Christmas, particularly on December 22nd and 23rd. Lidl has made significant market share gains, while other major supermarkets like Tesco, Aldi, and Sainsbury’s continue to navigate the competitive landscape.
Overall, despite price fluctuations in various food categories, the festive season is expected to bring a mix of challenges and opportunities for both retailers and consumers alike.