Ocado was the fastest-growing retailer for the second Christmas running, as shoppers increasingly turn to delivery for the ‘big Christmas shop’.
Lidl was the fastest-growing store-based retailer, with sales up 9.4% year on year in December. Sales at Asda crashed by 6.5% during the period, while Morrisons had its best trading in six months (+3.1%) having registered a drop in sales in the same period of 2024.
Online shopping was the fastest-growing channel for groceries this Christmas, according to NIQ data released this morning, with sales up 9.9% in the four weeks ended 27 December 2025.
Nearly a third (29%) of households opted to shop for groceries online, benefiting pureplay online retailer Ocado, where till sales jumped 12.8%. Online accounted for 13.5% of the market over December, up from 12.6% last year.
“It’s clear that the convenience of shopping online benefited a lot of UK shoppers over the 2025 Christmas period,” said Mike Watkins, NIQ head of retailer and business insight. “By taking advantage of booking delivery slots in advance, shoppers could do a ‘big Christmas shop’ online, including fresh foods, which helped drive growth.
“This was then supplemented with in-store visits in the last few days before Christmas, allowing shoppers to search for further seasonal discounts, treats and indulgences.”
Read more: Christmas volumes under pressure despite highest ever supermarket sales
Alongside Ocado and Lidl, Tesco, Sainsbury’s, Waitrose and M&S all took increased market share this Christmas, according to NIQ.
Overall, shoppers spent £19.6bn over the four weeks, with sales peaking in the week ending 20 December – though with Christmas falling on the following Wednesday, large full-range stores gained from last-minute trips into town on the extra day of trading.
While sales were up 2.5% overall on last year, spend actually fell below grocery inflation, and unit sales edged downward by 0.1%, as Brits shopped carefully to keep within budget. At 27% of till sales, promotional spend was higher than its Christmas 2024 level.
Watkins added: “Those retailers with sales momentum at the start of the quarter were able to extend this through to the end of December.
“Considering the external mood, music and the continued pressure on household finances, it was a Christmas of cautious celebration and a good four weeks for most food retailers.”
Despite tighter budgets, shoppers were happy to treat themselves over the break: premium private label sales grew 5.6%, with volumes up 3.1%, and impulse purchases were up 5.7% on 2024.
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