# Inflation drives Britain’s record Christmas grocery sales Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-04 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: UK Grocery Sales Reach Record £12.8 Billion Despite Price Meta Description: Discover how British grocery sales hit a new high in December, driven by price inflation and shifts towards supermarket own label products, according to market URL: https://financedigest.com/inflation-drives-britains-record-christmas-grocery-saleshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-04t103340z1lynxmpej03089rtroptp4britain-grocers-kantar-1736814637159-compressed.jpg) By James Davey LONDON (Reuters) – British grocery sales rose 9.4% to a record 12.8 billion pounds ($15.3 billion) in the four weeks to Dec. 25, though growth was driven by price inflation rather than increased purchasing, market researcher Kantar said on Wednesday. It said sales measured by volume, or the amount people bought, fell 1% year-on-year, showing the challenges [shoppers are facing during a cost-of-living crisis](https://www.financedigest.com/british-shoppers-defy-cost-of-living-crisis-at-christmas.html "British shoppers defy cost-of-living crisis at Christmas"). “This story played out across the traditional Christmas categories. For example, value sales of mince pies soared by 19% but volume purchases barely increased at all,” said Fraser McKevitt, Kantar’s head of retail and [consumer insight](https://www.financedigest.com/incoming-starbucks-boss-to-bring-consumer-insight-to-coffee-culture.html "Incoming Starbucks boss to bring consumer insight to coffee culture"). Kantar said grocery [price inflation](https://www.financedigest.com/euro-zone-inflation-eases-in-feb-but-core-prices-pick-up.html "Euro zone inflation eases in Feb but core prices pick up") was 14.4% in December, down from 14.6% in November, with prices rising fastest in markets such as milk, dog food and frozen potato products. This is the [second month in a row](https://www.financedigest.com/ericssons-board-rebuked-by-shareholders-at-agm-for-second-year-in-a-row.html "Ericsson’s board rebuked by shareholders at AGM for second year in a row") that grocery price inflation has fallen, raising hopes that the worst has now passed,” McKevitt said. Separate data published on Wednesday by the British Retail Consortium showed fresh food prices at UK supermarkets in [early December were 15.0% higher](https://www.financedigest.com/five-reasons-to-start-saving-early-for-higher-education.html "Five Reasons to Start Saving Early for Higher Education") than a year earlier, the biggest annual increase since at least 2005 when records started. Kantar noted that consumers continued to trade down to supermarkets’ own label products, with [sales rising](https://www.financedigest.com/mercedes-posts-rise-in-q1-sales-boosted-by-evs-premium-cars.html "Mercedes posts rise in Q1 sales boosted by EVs, premium cars") by 13.3%, well ahead of a 4.7% increase in branded lines. It said visits to supermarkets increased 5.2% year-on-year. Online grocery sales rose 4%, though its [share of the market](https://www.financedigest.com/global-splined-sleeves-market-size-share-trend-growth-forecast-to-2031.html "Global Splined Sleeves Market Size, Share, Trend & Growth Forecast To 2031") fell 0.6 percentage points to 11.6%. Market leader Tesco, Sainsbury’s and Asda all delivered solid performances, with [sales on a value basis up 6.0%](https://www.financedigest.com/over-60-of-hand-tools-sales-to-concentrate-in-industrial-applications-new-study.html "Over 60% of Hand Tools Sales to Concentrate in Industrial Applications: New Study"), 6.2% and 6.4% respectively over the 12 weeks to Dec. 25. [Shares in Tesco were up 1.9% in morning trading](https://www.financedigest.com/social-trading-is-the-new-way-that-gen-z-are-getting-their-share-of-the-pie.html "Social Trading is The New Way That Gen Z Are Getting Their Share of The Pie"), while Sainsbury’s was up 2.6%. But German-owned [discounters Aldi UK and Lidl GB remained the fastest growing](https://www.financedigest.com/discount-dining-clubs-tastecard-and-gourmet-society-grow-their-offering-as-chimichanga-and-spaghetti-house-both-sign-up.html "Discount dining clubs tastecard and Gourmet Society grow their offering as Chimichanga and Spaghetti House both sign up") chains with growth of 27.0% and 23.9% respectively, partly reflecting new store openings. Morrisons and Waitrose were the laggards, with [sales falls](https://www.financedigest.com/logitech-quarterly-sales-fall-22-as-slowdown-fears-bite.html "Logitech quarterly sales fall 22% as slowdown fears bite") of 2.9% and 0.7% respectively. On Tuesday, Aldi itself [reported a 26% increase in December sales](https://www.financedigest.com/manchester-united-tanks-on-report-glazers-may-avoid-sale-with-new-investment.html "Manchester United tanks on report Glazers may avoid sale with new investment"). Tesco and Sainsbury’s are due to update on [Christmas trading](https://www.financedigest.com/aldi-uk-to-recruit-6000-after-strong-christmas-trading.html "Aldi UK to recruit 6,000 after strong Christmas trading") next week. Overall UK inflation is running at 10.7% and consumers face the prospect of a tighter squeeze in 2023, with higher taxes and mortgage rates and scaled-back government support on [household energy bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero"). UK grocers’ market [share and sales](https://www.financedigest.com/monte-dei-paschi-to-have-underwriting-consortium-for-share-sale-by-tuesday-source.html "Monte dei Paschi to have underwriting consortium for share sale by Tuesday – source") growth (%) Market [share Market share % change](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") in 12 wks to 12 wks to sales Dec. 25 2022 Dec. 26 2021 (yr-on-yr) Tesco 27.5 27.9 6.0 Sainsbury’s 15.5 15.7 6.2 Asda 14.0 14.2 6.4 Aldi 9.1 7.7 27.0 Morrisons 9.1 10.1 -2.9 Lidl 7.2 6.3 23.9 Co-operative 5.6 5.8 4.3 Waitrose 4.7 5.1 -0.7 Iceland 2.5 2.4 10.2 Ocado 1.7 1.7 8.2 Source: Kantar ($1 = 0.8345 pounds) (Reporting by James Davey; additional reporting by David Milliken; Editing by Mark Heinrich and Catherine Evans) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---