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British households deliver 'record-breaking' Christmas sales despite grocery inflation

British households deliver 'record-breaking' Christmas sales despite grocery inflation
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Christmas 2024 marked a milestone for British households, delivering record-breaking take-home sales of £13.8 billion, an increase of £0.5 billion or 3.4 per cent compared to the previous year over the four weeks to 29 December 2024, Kantar reported on Monday (27).

However, while spending grew, the volume of goods purchased remained flat, reflecting the ongoing impact of inflation on consumer behaviour.

Grocery inflation, though lower than in previous festive seasons, remained a significant factor and was at 3.7 per cent last December.


Kantar stated that key Christmas staples such as chocolate, chilled desserts, spirits and fresh meat experienced notable price increases, with chocolate rising by 13 per cent.

Despite higher prices, consumers embraced premium own-label options, which grew by an impressive 14.6 per cent year-on-year and accounted for a record 7 per cent of total sales.

Comfortable households leaned toward own-label offerings, while struggling shoppers invested in trusted brands, which captured almost half of their spend.

Online shopping continued to outpace in-store sales, growing by £100 million when compared with Christmas 2023. Discounters also performed strongly, with sales rising by 4.8 per cent to £2.6 billion. Amazon retained its position as the leading general merchandise retailer, while TikTok made a notable entrance into UK social commerce, marking a shift in how consumers engage with retailers online.

Food outshone drink in festive baskets, with premium products, indulgent treats and sober curiosity shaping choices. Sales of low and no-alcohol options grew by 5.5 per cent, while alcohol sales declined overall by 1.7 per cent. Champagne was a rare exception, gaining £1.8 million from wine sales.

While supermarkets remained the dominant channel for holiday spending, their share of the market fell by 0.9 percentage points from 2023. Promotions remained consistent with the previous year, with Tesco leading the charge at 44% of spend on deals.

After a stagnant 2023, general merchandise experienced a significant boost this Christmas, with sales rising by 7 per cent when compared with Christmas 2023. Savvy British shoppers also spent more in the period leading up to Black Friday demonstrating the importance of preparation.

Looking ahead to Christmas 2025, stability in inflation is expected to bolster consumer confidence. Online sales are likely to continue their upward trend, driven by the grocery sector and general merchandise.

Retailers who capitalise on key seasonal opportunities, such as summer categories, and enhance their omnichannel strategies are well-positioned to thrive in the evolving market.

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