UK households spent £1.1 billion more on groceries in December than a year earlier, taking Christmas spending to a record £12.8 billion, but they had fewer items in their baskets in as rampant inflation hit home.
In a clear indication of how rising prices are hitting household budgets, the latest monthly report from retail analysts Kantar showed that while the total amount shoppers spent rose by more than 9%, the sales volume decreased by 1% compared to the same month in 2021.
Many bought alcohol to enjoy while watching the men’s World Cup, with beer sales reaching their highest level of the year on the day of England’s quarter-final against France on 10 December.
However, the most popular shopping day of the year was Friday 23 December, when more than half of households went to the shops or received a delivery.
Last month was the busiest at supermarkets since the coronavirus pandemic, with online sales accounting for a smaller proportion of the total holiday boom than last year.
Inflation prompted shoppers to cut back on some traditional favorites. The number of mince pies sold barely increased, for example, but the amount invested in them increased by 19%. Only 45% of households bought Brussels sprouts, down from 48% the previous year. However, the number of Christmas puddings sold rose by 6% despite strong inflation, meaning shoppers spent 16% more on festive desserts overall.
With strong competition among supermarkets, grocery price inflation eased to 14.4% in December from 14.6% in November. The value of takeaway grocery sales (so excluding takeaway sandwiches and drinks) rose 7.6% in the three months to December 25, with only Morrisons falling and Waitrose.
Fraser McKevitt, head of retail and consumer insights at Kantar, said: “This is the second consecutive month that grocery price inflation has fallen, raising hopes that the worst is over. However, it’s still a painfully high number at the current rate, affecting how and what we buy in stores.”
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Shoppers continue to look to combat inflation by turning to supermarket own-brand products, where sales rose 13.7%. Sales of premium own-label items were particularly strong, with Aldi and Lidl leading the way, underpinning total sales growth of 27% and 24% respectively in the three months to Christmas Day , well ahead of Tesco, Sainsbury’s and Asda, which all posted growth. of 6%, 6.2% and 6.4%.