Ireland saw a 6.8% increase in take-home grocery sales in the four weeks to 6 August, with the average price per pack up 8.8%, according to the latest data from Kantar.
Grocery inflation increased by 12.8% in the 12 weeks to 6 August, Kantar added, which is down on last month and the lowest since November 2022.
Emer Healy, business development director at Kantar, commented, "This is the third month in a row where there has been a drop in grocery inflation, which is welcome news for Irish consumers, although the rate is still incredibly high.
"Compared to last month’s grocery inflation rate of 14.7%, there has been a significant drop of 1.9 percentage points. This is the lowest level we have seen over the past 10 months, and we expect to see a continued gradual decline in inflation rates over the coming months."
Healy added that there has been a slight decline in average prices on essential lines, which has resulted in consumers spending €0.36 less on butter, milk and cheese combined.
Other Trends
In August, store visits increased by 2.7% year-on-year, however, it declined by 0.5% month on month from 20.1 shopping trips in July to 19.6 in August.
The percentage of packs sold on promotion declined by 2.8 percentage points compared with 2020, while products sold on promotion stood at 24.8%, down 0.2 percentage points compared to last year.
With fewer items on promotion, Irish shoppers are looking out for the best deals in the market, Kantar noted.
Private-Label Sales
Sales of own-label goods increased 13% in the latest 12 weeks, while branded items reported 5.7% growth.
For the third consecutive month, private label retained a higher share of the market than brands, hitting a value share of 48.1% compared to branded share at 46.3%.
Emer Healy added, "Buying own-label lines is one of the ways in which Irish consumers have been trying to save money at the tills and we can see the impact of this on their spend.
"The average increase in the household weekly grocery shop is €9.10 compared to last year, well below the extra €17.80 shoppers would have paid if they bought the same items 12 months ago based on the current rate of inflation."
Impact Of Weather
Shoppers spent €493,000 less on chilled burgers and grills and €1.3 million less on chilled prepared salads, year-on-year, as rains across Ireland in July impacted sales of the usual summer favourites.
Moreover, shoppers spent €2.5 million less on ice cream and a combined €2.3 million less on fruit squash and mineral water.
Sales of take-home confectionery and savouries rose €4.7 million and €2.6 million, respectively, and an additional €2.8 million was spent on soup and hot beverages.
Unseasonal rainfall also kept people from venturing in to shops, with footfall down for the fifth month in a row.
Elsewhere, online sales increased 11.2% year-on-year, with consumers spending an additional €16.6 million on the channel.
Top Retailers
With an equal market share of 22.6%, Dunnes Stores and Tesco emerged as Ireland's top retailers in the period
Dunnes Stores registered growth of 12.7% year-on-year, driven by shoppers returning to stores more often as well as the addition of new shoppers.
Tesco's saw growth of 12.6% year-on-year, which contributed an additional €98.8 million to its overall performance.
With a market share of 20.9% and growth of 5.8%, SuperValu secured the second position.
With 22.2 trips on average (up 5.8% year-on-year), the retailer recorded the highest number of shopping trips.
Lidl emerged in the third position with a market share of 13.8% and growth of 12.7% year-on-year.
More frequent trips contributed an additional €40.9 million to its overall performance.
Finally, Aldi reported growth of 7.7% year-on-year to acquire a 12.6% market share.
New shoppers and more frequent trips contributed an additional €34.6 million to its overall performance.
