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Xmas Supermarkets Hit £500M Daily, Asda Sales Plummet
7 Jan
Summary
- UK supermarkets earned a record £500 million daily during the festive season.
- Ocado and Lidl led sales growth, while Asda experienced a significant decline.
- High street non-food sales fell as consumers prioritized food and drink spending.
UK supermarkets experienced a record-breaking Christmas, raking in approximately £500 million daily in the four weeks leading up to December 28, 2025. This surge, amounting to £13.8 billion overall, represented a 3.8% increase from the previous year. Leading the charge were Ocado and Lidl, followed by Sainsbury's, Waitrose, and Tesco, all reporting healthy sales growth.
In stark contrast, Asda reported a 4.2% decrease in sales compared to the previous year, reaching £4.3 billion. This performance saw its market share shrink to 11.4%. The festive spending splurge on groceries came at the expense of High Street non-food retailers, including fashion, homeware, and electronics, which saw sales decline by 1.4% in December 2025. Experts attribute this shift to persistent food inflation and high living costs.
Retailers are bracing for further challenges in April 2026 with anticipated steep tax hikes, including business rates, and a minimum wage increase. Despite the wider retail gloom, Next managed to defy expectations, raising its profit forecast for the fifth time in 12 months due to a strong Christmas performance, particularly in its international sales.
