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Household spending on take-home groceries hit a record high this Christmas at £460 on average, according to the latest data from Kantar. Overall take-home sales at the grocers rose by 2.1 per cent over the four weeks to 29 December compared with last year.
Fraser McKevitt, head of retail and consumer insight at Kantar, says, “It was a solid Christmas at the supermarkets with sales surpassing £13 billion during the four weeks of December for the first time ever, showing people were clearly in the mood to celebrate and spend.
"However, despite the festive cheer, grocery price inflation has ticked up to 3.7 per cent, its highest level since March 2024.
“In contrast to reports of disappointing footfall across the rest of the high street, it was a very different story in the world of grocery. The average household made nearly 17 separate shopping trips this December, delivering the busiest month for the retailers since the pre-lockdown rush in March 2020.
"As anticipated, Monday 23 December was the most popular shopping day of the year, with sales a whopping 30 per cent higher than any other day during 2024.”
People were also willing to splash out that little bit more than usual, as sales growth for branded goods accelerated to 4.2 per cent, while premium own-label lines jumped by 14.6 per cent. The latter now account for a record 7.0 per cent of all sales, as nine in 10 households bought at least one of these products in December.
Sparkling wine and champagne were the stars of the festive drinks trolley, achieving sales growth of 4.4 per cent at a total of £187 million across the month. There was enjoyment in moderation too, as 11 per cent of the population bought a no or low alcohol drink, up from under 10% last year.
The category data reveals some interesting splits between how younger and older shoppers prefer to indulge.
McKevitt adds, “We’ve all got our own festive favourites, but it seems that age differences come into play too. Under 45s are far more likely to pick up a sausage roll, and they also go for a slightly more mediterranean spin, being the most likely to reach for panettone as well as antipasti and party food as part of their Christmas shopping.
"Meanwhile over 45s account for the majority of Christmas cake and fortified wine sales. The seasonal biscuit, however, knows no bounds appealing across the generations.”
Britain's largest grocer Tesco saw growth across its convenience, superstore and online channels contributing to a 5.0 per cent increase in sales over the 12 weeks to 29 December.
Sainsbury’s achieved its highest share since December 2019 at 16.0 per cent thanks to sales growth which outpaced the market at 3.5 per cent. Morrisons sales rose by 0.4 per cent with its share standing at 8.6 per cent. Asda now holds 12.5 per cent of the market.
McKevitt adds, “More people chose to do some of their Christmas grocery shopping online this year with 5.6 million households opting for delivery or click and collect services on at least one occasion. Online spending for the month reached a record £1.6 billion. This saw Ocado boost its sales by 9.6 per cent over the 12 weeks, taking its overall share to 1.8 per cent.”
Discount retailers Lidl and Aldi achieved their highest ever Christmas shares at 7.3 per cent and 10.0 per cent respectively. Lidl secured the fastest footfall growth of any retailer as spending through its tills increased by 6.6 per cent. Aldi’s sales were up 2.9 per cent, as it attracted an additional 315,000 customers to its stores.
Waitrose market share remained at 4.6 per cent with spending increasing by 2.1 per cent. Iceland’s sales rose by 1.0 per cent giving the frozen food specialist a 2.3 per cent share. Convenience retailer Co-op’s portion of the market is now 5.3 per cent.
Share of symbols and independents saw a slight dip and is at 1.3 per cent.
Outside of the grocers, food and drink spending at M&S increased by 8.7 per cent, driven by strong performance in its core fresh and chilled range (9 per cent higher) and ambient lines (11 per cent greater) across the 12 weeks.
UK stores saw record sales during Christmas this year with shoppers were seen flocking to bricks and mortar stores spending £14.6 billion, majorly focusing on deals and discounts, shows recent data released today (7).
According to NIQ Christmas 2024 Flash report, after a slow start, it was the biggest ever Christmas over the three weeks to Dec 28 2024 with shoppers spending £14.6 billion, a growth of 3 per cent vs the previous year.
Over the full 4 weeks the market grew by 3.2 per cent.
The highest level of promotions in three years this Christmas with 27 per cent of sales purchased on deal driven by brands at 37 per cent.
Shoppers searched out savings at bricks and mortar stores with visits to store up by 8 per cent. This came at the expense of online with online share falling to 11.9 per cent from 12.5 per cent a year ago.
Discounters were fast growing with market share up to 16.3 per cent up from 15.8 per cent a year ago.
This comes a day after discounter Aldi reported its "best Christmas ever" figure.
Aldi’s total sales rose 3.4 per cent year-on-year, reaching over £1.6bn. While this is a notable achievement, Lidl again outpaced Aldi with a 7 per cent growth during the same period due to its lower prices on key products.
Aldi’s success was fueled by customers trading up to its premium own-label products, with its Specially Selected range experiencing a 12 per cent increase in sales year-on-year.
Aldi responded to evolving consumer preferences by expanding this range to include less traditional meats like goose and duck and seafood dishes like lobster and salmon.
As pointed out by Aliyah Siddika, Retail Analyst at GlobalData, Aldi also successfully broadened its vegan and vegetarian options during the holiday season, appealing to diverse consumers with varying dietary needs and preferences.
"This expansion allowed customers to conveniently cater to all guests for parties or gatherings in one shopping trip. Aldi also introduced new products into its Specially Selected party food range, with wagyu appetisers, bao buns, and prawn toast.
"The Specially Selected range appealed to customers seeking high-quality, innovative products at affordable prices, as these premium products remained cheaper than similar products from its mid-market competitors."
Additionally, Aldi effectively marketed its British products, recognising the increasing demand for these food items during the holiday season.
Aldi experienced robust sales of its British products, including 350,000 fresh British turkeys, over 400 tonnes of British beef, and nearly three million British Brussels sprouts. By focusing on product sourcing throughout the year, Aldi can continue to attract customers and expand its customer base by enhancing perceptions of product quality.
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A Christmas shopper walks on South Molton street on December 6, 2024 in London, England.
UK retail footfall fell by 2.2per cent in 2024 compared to the previous year, marking the second consecutive year of decline, according to the latest data from BRC-Sensormatic.
December’s crucial festive period delivered underwhelming results despite a slight improvement compared to November.
Footfall in December was down 2.2 per cent year-on-year, an improvement from November's 4.5 per cent decline, attributed partly to the later timing of Black Friday in 2024. High streets saw a 2.7 per cent drop in December, while shopping centres experienced a more significant decline of 3.3 per cent. Retail parks remained stable, with no year-on-year change, benefiting from their free parking and larger store formats.
Across the UK, all nations experienced footfall declines in December, with Northern Ireland hit hardest, down 5.8 per cent, followed by Wales (-2.6 per cent), England (-2.1 per cent), and Scotland (-1.5 per cent). Over the three months to December—the critical ‘Golden Quarter’—footfall decreased by 2.5 per cent year-on-year.
Helen Dickinson, chief executive of the British Retail Consortium, described December as a “drab” end to a challenging year for UK retail. “High streets and shopping centres were hit particularly hard throughout the year as people veered towards retail parks,” she said. “The Golden Quarter, typically the peak of shopping activity, provided little relief, with footfall down over the period.”
Dickinson also highlighted the need for structural changes to support the retail sector. “Investment in town centres and high streets is held back by our outdated business rates system, which penalises town and city centres,” she said, calling for government reforms that do not increase rates for any retailer and instead foster investment and growth.
“With retailers facing £7 billion in additional costs this year from increased tax and regulations, the changes to the business rates system must be made in way that supports retail investment and growth in the years ahead,” she noted.
Andy Sumpter, retail consultant EMEA for Sensormatic, echoed the sentiment, noting that December's footfall failed to meet expectations despite some busy trading days. "As footfall limped towards the festive finish line, December's lacklustre performance compounds a disappointing end to 2024, marking the second consecutive year of declining store traffic,” Sumpter said.
“Retailers will now need to look afresh to 2025 and chart a course to adopt innovative strategies to reverse this trend or maximise the sales potential of fewer visitors, finding new ways to make each store visit count.”
Fujitsu should have shown more "remorse" since failings of Horizon IT system emerged, minister Gareth Thomas has said while claiming that all those who had applied for compensation would have received "80 per cent of the amount" by March 2025.
After an intensive year of testimony and revelations at the public inquiry, Thomas recently suggested more could have been done by Fujitsu since the truth about Horizon emerged.
“I’m surprised Fujitsu haven’t done more to indicate remorse. It was a computer system they developed," The Guardian quoted Thomas as saying.
“I’m glad they’re still working with the Post Office to make sure the current Horizon system [works], which the Post Office is still having to use while a replacement is in development; I’m grateful to them for the fact that they’re continuing to work with us.
“But clearly there were significant failings, or it would appear, at least, that there were significant failings in the computer system. And we’ll obviously wait for Sir Williams to opine in full on that issue.
"I think I’m just surprised that they haven’t … wanted to do more," he said.
At the start of 2024, Fujistu, which is forecast to have earned more than £1.5bn from the Horizon contract by the time it expires in 2025, apologised for the role it had played.
The Japanese company also said it will negotiate a compensation package with the government after the public inquiry led by the former high court judge Sir Wyn Williams has published its report.
Talking about compensation to the victims, Thomas claimed that all those who had applied for compensation would by March next year have received 80 per cent of the amount offered even if the total sum was still under dispute.
“There are a series of complex cases still to be sorted, although we have made a lot of progress in just the five months since we’ve been in government. The amount of compensation that’s been paid out has doubled since we came into office," he said.
The Post Office expects to have paid out more than £650 million in compensation to branch owner-operators by next March, and it has put aside £1bn.
Commenting on the buzz on the future of Post Office model, Thomas expressed his doubts on the proposed idea of mutualisation.
He said, “My instinct is that, one of the ways you transform the culture of an organisation like this is to give more power to those who were treated very badly in the past.
"We’ve got to think through what are the incentives that you build in to the governance of an organisation like the Post Office that really gives postmasters much more of a voice in the key decisions the board of the Post Office has to make going forward.
“Given that the Post Office has got a significant social value in that sense, I don’t think I’m as yet convinced that full mutualisation is the way forward. But how do we ensure postmasters can hold those at the centre more accountable?”
It was reported earlier that the government is looking at the future ownership and structure of the Post Office. The Communication Workers Union has proposed handing it over to branch operators, known as mutualisation.
The Scottish Government must urgently act to support the country’s struggling high streets, Labour has said, citing an analysis' findings that more than 10,000 retail jobs were lost in a year.
The data, based on the Scottish Government’s Business in Scotland report, showed that retail jobs in Scotland are at their lowest levels since at least 2010. It found there were 235,920 retail jobs recorded this year – down from 246,270 last year and 258,900 in 2010.
The drop was the sharpest in the last year. Between 2023 and 2024 alone, more than 10,000 jobs were lost from the industry – almost 1 in 20 retail jobs. In 2023 there were 246,270 retail jobs.
While there has been a shift to more online shopping, the impact of the covid pandemic can be seen in the statistics.
Between 2010 and 2020 the decline in retail jobs was around 8000 over a ten-year period. Between 2020 and 2024 however, the drop was almost 15,000 in just four years.
Scottish Labour has criticised the Scottish Government for not extending rates relief to the retail industry.
During her budget earlier this month, Finance Secretary Shona Robison announced a 40 per cent rates relief for the hospitality sector. Labour has called on her to match England and extend that tax cut to the retail sector.
Daniel Johnson, Scottish Labour economy spokesperson, said “The decline of our high streets is impossible to ignore.
“The pressure on retail businesses is bad for Scotland’s economy and for local communities.
“We need a real plan to support retail and breathe fresh life into Scotland’s high streets – including short-term rates relief and a long-term plan to level the playing field between local businesses and online giants.”
Johnson said the Scottish Government can still make changes to the budget for next year to help businesses with a similar scheme.
The draft budget, presented by Finance Secretary, Shona Robison, will be debated again in the new year before a final vote in the Scottish Parliament in February.