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.

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Sourced from Retail Week, Bloomberg