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December 4, 2020

Covid-19: 2020 could be the UK’s year of the Christmas dinner box

The Covid-19 pandemic has compelled consumers, retailers and foodservice operators alike to adapt quickly to rapidly changing demand spaces, which has had a subsequently devastating impact on the UK’s foodservice sector. With Christmas only weeks away, supermarkets and foodservice operators have begun launching their Christmas dinner boxes, focusing on convenience and stress reduction for the consumer during this coronavirus-afflicted holiday period.

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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

In this landscape, Christmas dinner boxes present a small route back to the consumer for foodservice operators; delivering meal kits direct to the consumer, with all the ingredients required to recreate restaurant-quality meals with minimal effort. There are several reasons why consumers might opt for a Christmas dinner box, not least because 2020 has been so emotionally exhausting and because many consumers are missing restaurants.

Foodservice in the UK is in a troubling, precarious situation. Christmas is traditionally the time of year where offices, friends and family go out and have a special meal, but obviously, those plans have been put on hold by the pandemic. In the most recent survey by GlobalData, 68%*2 of UK consumers said they were eating dinner out of the home less frequently than before the pandemic, with 29%* said they would stop altogether. UK consumers were finding dining out increasingly unconvincing during the tiered local lockdown system, with rising Covid infections prompting lockdown and the closure of non-delivery foodservice.

At the more premium end of the scale, Chef Tommy Banks has prepared three boxes for the festive period, including a five-course meal with trimmings, pudding, mince pies and a bottle of wine, to be delivered prior to Christmas. Tredwells restaurant and Elite Bistros have also launched Christmas provisions and meal boxes at prices ranging from £45–100 per person. These more premium products are likely to appeal to consumers with higher disposable income who desire the high-quality fare of restaurants delivered directly to their door.

That said, the value trend is expected to be key to UK consumer decisions in the post-pandemic period as coronavirus-related economic damage and the upcoming realities of Brexit impact the UK economy. Indeed, according to GlobalData, 98%*3 of UK consumers are concerned about the economy, and over half (54%)* describe themselves as ‘extremely concerned’. To successfully target value-focused consumers, UK supermarket Asda is selling a Christmas dinner box that serves eight people for less than £15, although it lacks sauces, desserts and drinks. Asda’s competitor, Tesco, is selling a festive meal box for £35 for two people, although it also includes dessert, crackers and bottle of champagne, and Morrison’s is selling a dinner box that serves four and costs £50, including sauces, trimmings and seven dessert items.

Asda’s approach of selling all the primary items in a bundle to serve eight people is likely to be an effective promotion given the economic concerns affecting large swathes of the population this year. Given the cost of Covid-19 and lockdowns, Asda’s approach is likely to appeal to a very significant proportion of consumers this Christmas.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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