Irish grocery sales fell by 4.9% in the 12 weeks to 12 June 2022, as grocery price inflation reached 6.5%, its highest level since February 2013, according to the latest data from Kantar.
Rising prices could add €453 to the average annual grocery bill, a figure over €100 higher than predicted in early May, Kantar noted.
Emer Healy, senior retail analyst at Kantar, stated, “Food and drink prices are on a steady upwards trajectory and many people will be feeling understandably worried about the rising cost of living.[…] We’ve seen some of the sharpest increases in essentials like butter, eggs, bread, and flour, which are a non-negotiable feature on the shopping list for many of us.”
Fewer Trips To Grocery Stores
Data also showed that shoppers are making three fewer trips to grocery stores compared to the same period last year and are opting for deals and private-label brands to manage costs.
Around 53% of the consumers said they would actively seek out for deals and discounts in stores, while 66% said they would swap the branded product in their shopping basket with a private-label item, if it was cheaper.
Emer Healy noted that “this trend is expected to continue over the next 12 months and retailers offering good value, own-label products and promotions will be the most successful in attracting and retaining customers.”
Shoppers spent an additional €575,000 more on burgers and grilling food in June compared with May, sunscreen sales increased by 36% and ice cream sales saw shoppers spend €2.4 million more.
Sales of savoury snacks and carbonated soft drinks increased by €1.2 million and €930,000, respectively, compared to the same four week period in June 2021.
Online Grocery Market
The online grocery market grew by 9.3% in June. Healy explained, “Online channels are continuing to grow even over two years on from the first lockdown, which points to its staying power as we adjust to new routines and lifestyle changes.
“A lot of this growth is coming from families with younger children who are getting organised as the school summer holidays fast approach. They’ve spent an additional €2.3 million on online grocery shopping over June, perhaps hoping to save on extra trips out in the car and avoid the petrol pumps.”
Top Retailers
Dunnes and Tesco emerged as Ireland’s top retailers, having witnessed €8.2 million more spent between them on their private-label ranges.
Both retailers now hold a 22.1% share of the market, with Tesco seeing growth of 0.6 percentage points in this period, data showed.
Tesco’s performance was boosted by a 10% jump in online sales in the month of June, with shoppers spending an additional €2.9 million.
SuperValu’s market share stood at 21.7%, follows by Lidl and Aldi at 13.2% and 12.3%, respectively.
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
