UK shoppers traded up for Christmas 2009

UK supermarkets enjoyed a premium Christmas, according to the latest Kantar Worldpanel, formerly TNS Worldpanel, grocery market share figures for the 12 weeks ending 27 December 2009.

Kantar claims the figures provide the latest indication that recessionary buying behaviour is all but over - a stark contrast to the picture painted by figures a year ago.

Edward Garner, communications director at Kantar Worldpanel, said: "Christmas is traditionally a time when shoppers prioritise the quality of food over value but the recession put a stop to this in 2008. We are now seeing signs of a return to more traditional Christmas purchasing habits with a growth in premium ranges, particularly Tesco Finest, over the festive period."

Evidence of consumers throwing recessionary caution to the wind came from Waitrose and Sainsbury's, which both recorded higher-than-expected sales.

Waitrose recorded the highest growth in both market share and turnover since August 2005, while Sainsbury's continued its strong run with a market share increase for the eleventh consecutive report.

Morrisons finished a good year with a turnover increase of 10.3% - almost twice the market rate - driven by a strong Christmas loyalty promotion in the run-up to Christmas.

Morrisons: strong year

Similarly Tesco and Asda have reaped the rewards of popular alcohol promotions over the festive period.

The discounters, meanwhile, struggled as consumer spending reignites.

Aldi has maintained its share of the grocery market, although comparisons must be drawn between its 5.2% growth this Christmas and 25% growth at Christmas 2008, said Kantar.

Lidl has shown the lowest growth for seven years and has lost market share for the first time since March 2004 - indicating that the discounters have, for the time being, fallen out of favour.

Among the UK's leading convenience retailers Spar reports total sales have increased by 10.4% since 14 December 2009, following a 6.5% rise in like-for-like business in the seven months to November.

Spar said the snow and cold weather benefited sales in the run-up to Christmas, with most stores reporting a good flow of customers braving the extreme weather for their last minute purchases. Spar's alcohol sales were also boosted by the closure of the off-licence chain Threshers.

At the Co-operative like-for-like sales (excluding fuel) increased by 5% in the three-week festive trading period to 2 January, and by 4.8 % in the 12 weeks to 2 January. This is the sixteenth consecutive quarter of like-for-like sales growth for the retailer. In the same 12 weeks, total year-on-year sales grew by 66%, boosted by the acquisition of Somerfield.