British households navigated a careful balance of festive indulgence and financial prudence during the 2025 Christmas period, pushing grocery sales to a fresh record high. According to data from Worldpanel by Numerator, total spending in the run-up to Christmas reached £13.8 billion, marking a 3.8 per cent increase on the previous year.
A Christmas of Considered Choices
While the overall spend climbed, the story behind the numbers reveals a nation more budget-conscious than ever. Moderately easing retail inflation, which saw food prices rise less sharply than anticipated, provided some relief. However, shoppers actively sought value, making own-brand products a standout winner. Sales for supermarket own-label ranges surpassed £1 billion in December for the first time, a clear signal of shifting habits.
Fraser McKevitt, head of retail at Worldpanel, commented on the trend. “Easing inflation helped to take the edge off the cost of Christmas this year, giving households a little more room to spend,” he said. “But it was a Christmas of smart savings and considered choices – almost every household bought into supermarkets’ premium ranges, while price remained front of mind.”
Supermarket Shake-up: Ocado and Lidl Lead Gains
The competitive landscape saw significant movement, with the biggest gains occurring at opposite ends of the market. The online specialist Ocado and the discount giant Lidl were the season's fastest climbers.
Lidl enjoyed a ten per cent surge in sales compared to the 2024 festive season, boosting its market share to 7.8 per cent. Ocado achieved an even larger 15 per cent jump in festive sales, elevating its market share to 2.1 per cent.
Despite this, Tesco secured the lion's share of total Christmas food spending. Asda held onto its position as the third-largest grocer, even though its December sales fell by four per cent.
Trends in the Trolley: Meat, Snacks, and Sobriety
When it came to what Brits actually bought, fresh produce topped the list. Shoppers forked out £115 million on fresh meat, making it the single biggest grocery category. Convenient, party-friendly options also proved popular, with chilled snacks like finger food and antipasti generating £80 million in sales.
A notable shift was the continued rise of the 'sober Christmas'. Sales of no and low-alcohol drinks soared by 14 per cent from December 2024, with a record 2.7 million households choosing alcohol-free alternatives for their festive shop.
“As consumers we’re open to more variance during those traditional, festive moments,” McKevitt observed. “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.”
Looking ahead, the retail sector remains cautious. Although festive sales held steady, supermarket bosses from Tesco, Lidl, and Morrisons have warned that high food inflation is likely to persist through 2026, driven by ongoing high costs within the supply chain.
