UK supermarkets raked in £500m a day over Xmas - but Asda sales DROP in festive horror show
Supermarkets raked in a record £500million a day in the run-up to Christmas as shoppers splashed out on food and drink.
But in a sign there were winners and losers, figures show Asda missed out on the festive bonanza and High Street spending fell.
A report by industry experts Worldpanel crowned Ocado and Lidl the best-performing grocers in the crucial ‘golden quarter’, followed by Sainsbury’s, Waitrose and Tesco.
But the research made bleak reading for Asda, with sales 4.2pc lower than in the same period last year at £4.3billion.
The slump came even as supermarkets raked in a record £13.8billion in the four weeks to December 28 – up 3.8 per cent on a year earlier and close to £500million a day.
And accountancy firm BDO suggested the splurge on food and drink came at the expense of High Street stores, which were shunned by cash-strapped shoppers.
Christmas crackers: A report by industry experts Worldpanel crowned Ocado and Lidl best-performing grocers in the crucial ‘golden quarter’, followed by Sainsbury’s, Waitrose and Tesco
Sophie Michael, head of retail at BDO, said: ‘Due to persistent food inflation and high living costs, consumers reduced their discretionary spending over the Christmas period, focusing on festive food, drinks and experiences instead of products.’
Sales across non-food categories, including fashion, homeware and electronics, were down 1.4 per cent in December on a year earlier, BDO found.
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This was the worst monthly performance since November 2024. Consumers were put off by the late Budget and rumours of tax rises, while ‘December failed to generate some much-needed festive cheer’, Michael added.
Experts have warned of more gloom as retailers face steep tax hikes in April, including business rates, and another inflation-busting increase in the minimum wage.
In contrast to non-food retailers, supermarkets saw sales soar, with Ocado takings in the three months to December 28 up 15 per cent on a year earlier.
Lidl took the title of fastest growing bricks-and-mortar supermarket with sales up 10 per cent to just under £3billion.
Sainsbury’s sales rose 5.2 per cent to just under £6.2billion and Waitrose added 4.5 per cent to £1.8billion.
Tesco, Britain’s biggest supermarket, took its biggest slice since March 2015, with its market share rising to 28.7 per cent as sales increased by 4.3 per cent to £10.9billion.
But Asda failed to cash in, with sales in the period falling 4.2 per cent to £4.3billion.
The UK’s third-largest grocer’s market share has shrunk since its takeover five years ago by private equity firm TDR Capital and the billionaire Issa brothers.
It now stands at 11.4 per cent, down from 12.4 per cent a year ago. Sector expert Paul Stainton said this amounted to an ‘awful performance’ for Asda.
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