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.