Brits splashed out on groceries in the run-up to Christmas but watched their budgets more than ever, as own-brand products and cut-price veg caught the eyes of shoppers.
Festive grocery sales increased by 3.8 per cent on the previous year, as Brits spent a record £13.8bn on Christmas supermarket shops amid moderately easing retail inflation which meant food prices climbed by less than feared.
Own-brand products proved more popular than ever, reaching over £1bn in December sales for the first time, as Ocado and Lidl continued to be the fastest climbers among the UK’s leading supermarkets, according to data from Worldpanel by Numerator.
Brits forked out for fresh meat more than any other grocery, spending £115m, while chilled snacks like finger food and antipasti were a common fixture in holiday baskets, taking £80m in sales.
Fraser McKevitt, head of retail at Worldpanel, said: “Easing inflation helped to take the edge off the cost of Christmas this year, giving households a little more room to spend.”
But Christmas shoppers are thinking more than ever about their budgets, he warned: “It was a Christmas of smart savings and considered choices – almost every household bought into supermarkets’ premium ranges, while price remained front of mind.”
Ocado and Lidl make biggest gains
The biggest gains among supermarkets were made at both ends of the budget spectrum, with online supermarket Ocado and budget grocer Lidl both making bigger Christmas sales.
Lidl’s sales were up ten per cent from the previous festive season, pushing its market share to 7.8 per cent while Ocado reached a 2.1 per cent market share following the biggest increase in festive sales (15 per cent).
Tesco attracted the lion’s share of Christmas food spending and Asda retained its third-place standing despite a four per cent fall in December sales.
Though festive sales remain steady, supermarkets fear food inflation is unlikely to turn a corner in 2026.
Bosses at Tesco, Lidl and Morrisons, among others, warned earlier this week that high food inflation is likely to persist this year, driven by the high costs facing the industry.
Brits go cold turkey over Christmas
A sober Christmas is surging in popularity among Brits, as sales in no and low-alcohol products climbed by 14 per cent from December 2024.
More households than ever are cutting booze out of their Christmas shop with 2.7m opting for sober alternatives, according to McKevitt.
He said: “As consumers we’re open to more variance during those traditional, festive moments – whether it’s switching the Bucks Fizz for Kombucha or enjoying a classic cocktail alongside a more health-focused option, consumers are finding enjoyment in more choice.”