M&S was a big winner among the major supermarkets over the golden quarter as shoppers traded up.
According to the latest data from NIQ, total till sales at M&S surged 12.1% over the 12 weeks to 23 December as almost 29% of households shopped at the retailer over the festive period.
However, across the whole grocery sector, M&S was beaten by German discounter Lidl, where sales rose 15.3% over the quarter.
Fellow discounter Aldi UK’s sales were also up 11.4%, increasing the two supermarkets’ combined market share to 20.1%.
Sales across the grocery retailers reached a record-breaking £4.8bn during the week before Christmas, a 4.3% rise compared to Christmas 2022.
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Other UK supermarkets also experienced strong trading, with Tesco sales up 7.4% and Sainsbury’s revenue up 8.7%.
NIQ UK head of retailer and business insight Mike Watkins said: “With a full week of shopping before Christmas Day and then the benefit of another week to spend in the build-up to New Year’s Eve, it was an omnichannel Christmas.
“Shoppers mixed and matched across the month to take advantage of the convenience of an early online delivery or click and collect and then store visits for last-minute shopping for fresh and festive food for family, friends and the new year celebrations.”
“However, with shoppers spending around 18% more on their groceries than two years ago, many were mindful of overspending, economised early in the quarter and overall bought less volume in eight out of the 12 weeks.
“With low everyday pricing and loyalty card savings now key strategies across the industry, retailers will need to refocus on how they differentiate and offer other reasons to choose their stores to help sales growth and rebuild store equity.”
NIQ expects total till growth to be 5% over the next year.
Watkins added: “Looking ahead, it’s likely that the cautious shopper sentiment seen in 2023 will continue for the first part of 2024 but from late Spring onwards we can anticipate confidence slowly improving.”
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