Record grocery spending this Christmas as Brits indulge in premium foods and sparkling wines

Grocery spending reached an all-time high this Christmas, with Brits indulging in premium goods and sparkling wines, contrasting starkly with the sluggish growth in retail spending.

According to data, overall take-home sales at grocery stores increased by 2.1 per cent in the four weeks leading up to 29 December compared to the previous year, as reported by City AM.

Fraser McKevitt, head of retail and consumer insight at Kantar, commented: "It was a solid Christmas at the supermarkets with sales surpassing £13bn during the four weeks of December for the first time ever, showing people were clearly in the mood to celebrate and spend."

Data from NIQ echoed this sentiment, labelling it the "biggest ever Christmas" with sales growth at three per cent and total spend at £14.6bn during December. This is a significant contrast to retail spending in 2024’s golden quarter, which saw only minimal growth during the Christmas period – suggesting Brits prioritised spending on food over goods.

High street growth was particularly sluggish this Christmas, with sales increasing just 0.1 per cent in the last three months of the year, according to insolvency firm BDO. Tesco, Aldi and Lidl emerged as the top performers, with Tesco maintaining its position as the most popular UK supermarket, accounting for over a quarter of all sales during the Golden Quarter.

Sales totalled £10.5bn in the last twelve weeks of the year.

Discount retailers Lidl and Aldi have reported their highest ever Christmas shares, with 7.3 per cent and 10 per cent respectively. Lidl saw the fastest footfall growth of any retailer, with spending through its tills increasing by 6.6 per cent, according to Kantar.

The search for cheaper goods was a key trend this year, with NIQ finding that 27 per cent of sales this Christmas were for promotional items, the highest in three years. Due to an increase in online spending, Ocado also boosted its sales by 9.6 per cent, taking its market share to 1.8 per cent.