Lockdown restrictions boosted UK grocery sales during December as many people, unable to visit pubs and restaurants, upgraded their spending on products to consume at home.
A Christmas party
According to market research group Kantar, December spending hit a record £12 billion, 10% up on the November figure which was itself a record.
Despite last-minute rule changes affecting many people’s plans, it seems people were determined to indulge themselves at home after a tough year.
Most supermarkets will report on Christmas trading next week but Kantar anticipates that all will have record sales.
A New Year hangover?
A Brexit deal has been signed but the Food & Drink Federation estimates that food importers face £3 billion in additional costs – and it’s not yet clear who will pay for those.
“There could be a tempestuous set of discussions to come between suppliers and supermarkets, who are ever-aware of the need to be price-competitive,” Will Hayllar, of OC&C Strategy Consultants, told Bloomberg.
Richard Harrow, BFFF chief executive, added: “Whilst this year’s performance has been driven by the changing shopping habits due to the pandemic and the return to the big weekly shop, many consumers have also been buying more frozen products due to the long shelf-life, reduced food waste, value for money and variety of food on offer."
Source: Retail Week