Supermarkets saw their highest level of transactions in December since 2019, with promotions boosting sales.
Customers made a total of 488 million grocery trips during the four weeks ending 24 December, according to market research firm, Kantar.
Some £13.7bn was spent despite food price inflation falling at its fastest level ever to 6.7 per cent in December, it said.
Mince pies and Christmas pudding made way for seasonal vegetables, sausages and pigs in blankets in shoppers’ basket over the festive period.
Sales of traditional Christmas dinner items including parsnips, sprouts and potatoes were up, along with festive meats including pigs in blankets, sausages, hams and turkeys.
Supermarket giant Tesco held the highest market share at 27.6 per cent, with sales growing by 7.5 per cent.
Sainsbury’s, however, reached its highest share since December 2020 at 15.8 per cent, pushing up sales by 9.3 per cent.
Aldi and Lidl were again the fastest growing of the supermarkets, with sales up 9.9 per cent and 13.8 per cent, respectively, while Asda, Morrisons and Waitrose lost out to their bigger rivals.
Fraser McKevitt, head of retail and consumer insight at Kantar, explains: “The rate of inflation is coming down at the fastest pace we have ever recorded, but consumers are still facing pretty hefty pressures on their budgets. Nearly one third of all spend in the four weeks to Christmas Eve was made on items with some kind of offer, the highest level since December 2020 and £823m more than last year.”
The Kantar data comes ahead of Christmas trading updates from Sainsbury’s followed by Tesco and Marks and Spencer.
Russ Mould, investment director at AJ Bell, said: “Tesco and Sainsbury’s were lifted by Kantar data showing supermarkets had enjoyed their busiest Christmas since 2019 – though the strong showing of discounters Aldi and Lidl demonstrated once again this is an industry with razor sharp competition.”
Victoria Scholar, head of investment at interactive investor, added: “While inflation is coming down, prices are still rising on average albeit at a slower pace, meaning that customers are still having to spend more to obtain a similar number of items. The cost of living crisis has prompted shoppers to trade down to cheaper, unbranded products, a shift which has boosted sales of supermarkets’ own-label lines such as Sainsburys’ Taste the Difference.
“While Marks and Spencer is not included in the Kantar figures, it was a standout stock market winner for 2023, with shares hitting a five-year high, valuing the company at over £70m.”
