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Christmas pudding sales slump in challenging festive period | Christmas pudding sales slump in challenging festive period |
(about 2 hours later) | |
Are the days of families tucking into a Christmas pudding after their festive dinner slowly coming to an end? | Are the days of families tucking into a Christmas pudding after their festive dinner slowly coming to an end? |
Figures from market research company Kantar suggest they may be, as sales of the traditional dessert fell by 16% in the UK in the run-up to Christmas. | Figures from market research company Kantar suggest they may be, as sales of the traditional dessert fell by 16% in the UK in the run-up to Christmas. |
There was also an 11% drop in sales of seasonal biscuits in supermarkets, while turkey sales were down by 1%. | There was also an 11% drop in sales of seasonal biscuits in supermarkets, while turkey sales were down by 1%. |
The figures come as Morrisons said its sales fell over the Christmas period amid "challenging" trading conditions. | The figures come as Morrisons said its sales fell over the Christmas period amid "challenging" trading conditions. |
The UK's fourth-largest supermarket group reported a 1.7% fall in like-for-like sales - which strip out the impact of new stores - excluding fuel, for the 22 weeks to 5 January. | |
Morrisons is the first of the big four chains to report Christmas sales, with Sainsbury's and Tesco due to report later this week. | Morrisons is the first of the big four chains to report Christmas sales, with Sainsbury's and Tesco due to report later this week. |
Festive winners | Festive winners |
On Monday, discount chain Aldi said that its total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. It also said it sold 55 million mince pies over the festive period. | On Monday, discount chain Aldi said that its total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. It also said it sold 55 million mince pies over the festive period. |
According to Kantar, Aldi's sales over the 12 weeks to 29 December went up by 5.9%. | According to Kantar, Aldi's sales over the 12 weeks to 29 December went up by 5.9%. |
Fellow discount retailer Lidl had the highest percentage increase in sales growth for bricks and mortar supermarkets over the same period, with its sales up 10.8%. | Fellow discount retailer Lidl had the highest percentage increase in sales growth for bricks and mortar supermarkets over the same period, with its sales up 10.8%. |
Lidl and Aldi had their highest-ever combined Christmas market share of 13.7% - more than treble the figure in 2009. | Lidl and Aldi had their highest-ever combined Christmas market share of 13.7% - more than treble the figure in 2009. |
However, Britain's fastest-growing grocer according to Kantar was online retailer Ocado, where sales rose by 12.5%. | However, Britain's fastest-growing grocer according to Kantar was online retailer Ocado, where sales rose by 12.5%. |
'No post-election rush' | 'No post-election rush' |
Overall, Kantar's figures indicated that in the 12 weeks to 29 December, supermarket sales grew by 0.2% from a year earlier - the slowest rate of growth over the Christmas period since 2015. | Overall, Kantar's figures indicated that in the 12 weeks to 29 December, supermarket sales grew by 0.2% from a year earlier - the slowest rate of growth over the Christmas period since 2015. |
"There was no sign of the post-election rush many had hoped for in the final weeks before Christmas, with shoppers carefully watching their budgets," said Kantar's Fraser McKevitt. | "There was no sign of the post-election rush many had hoped for in the final weeks before Christmas, with shoppers carefully watching their budgets," said Kantar's Fraser McKevitt. |
While sales of some foods went down, the fizz also went out of sparkling wine with its sales falling by 8%. | While sales of some foods went down, the fizz also went out of sparkling wine with its sales falling by 8%. |
However, beer and wine were more popular than in 2018 with respective rises of 1% and 2% in their sales over the previous year. | However, beer and wine were more popular than in 2018 with respective rises of 1% and 2% in their sales over the previous year. |
And instead of Christmas pudding, the desserts that proved most popular were sponge puddings (up 12.4% on 2018), crumble (up 9.4%) and custard to go with them (up 28%). | |
Another data firm - Nielsen - using different methodology to Kantar, said supermarket sales grew by just 0.5% in the last four weeks. | Another data firm - Nielsen - using different methodology to Kantar, said supermarket sales grew by just 0.5% in the last four weeks. |
It said grocery sales reached a peak of £6.2bn over the two weeks to 28 December - but this was down 0.2% compared with the same period in 2018. | It said grocery sales reached a peak of £6.2bn over the two weeks to 28 December - but this was down 0.2% compared with the same period in 2018. |
'Fiercely competitive' | 'Fiercely competitive' |
Reflecting on the Morrisons figures, the company's chief executive, David Potts, said: "It was encouraging that during an unusually challenging period for sales, our execution was strong and our profitability robust, demonstrating the broad-based progress we have made during the turnaround. | Reflecting on the Morrisons figures, the company's chief executive, David Potts, said: "It was encouraging that during an unusually challenging period for sales, our execution was strong and our profitability robust, demonstrating the broad-based progress we have made during the turnaround. |
"As always, we will take some learnings into the new year and look forward to 2020 with a strong plan and solid foundations on which to continue to grow." | "As always, we will take some learnings into the new year and look forward to 2020 with a strong plan and solid foundations on which to continue to grow." |
Morrisons said its key Christmas items were "once again very competitive", with most prices the same as or lower than in 2018. | Morrisons said its key Christmas items were "once again very competitive", with most prices the same as or lower than in 2018. |
Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons had been "outmanoeuvred" by its competitors. | Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons had been "outmanoeuvred" by its competitors. |
"Shrinking sales demonstrate the fiercely competitive food sector," he added. "Shoppers remained fixated on searching for the best value and highly price-sensitive against the backdrop of ongoing uncertainty." | "Shrinking sales demonstrate the fiercely competitive food sector," he added. "Shoppers remained fixated on searching for the best value and highly price-sensitive against the backdrop of ongoing uncertainty." |