THE RATE OF inflation in grocery sales has reached 16.4%, a record high, according to market analysis by Kantar.
In contrast, at the same time last year, grocery inflation was only 2.4%.
New figures released by Kantar show people are shopping more often but purchasing less on each visit to the store as frequency rose 7% but volume per trip fell 10.9%.
In a 12-week period ending on 19 February, take-home grocery sales increased by 8.5%, putting an additional €168.7 million into the market. The increase equates to around an extra €113.56 per buyer compared to the same period last year.
Senior Retail Analyst Emer Healy attributed the rise in spending to rapid inflation.
“This growth in sales is largely down to grocery price inflation hitting 16.4%, a new record high,” Healy said.
“This time last year it was 2.4%, so [it is] a significant 14% increase within 12 months,” she explained.
“In a year of rising costs and sky-high inflation, Irish consumers are looking for ways to manage their household budgets. This has led to the Irish grocery market becoming more
competitive than ever, with shoppers looking for the best deals among the retailers.”
Year-on-year, consumers spent €2.3 million more on vegetables, but the volume purchased fell by 9.5%.
The amount of cucumbers and tomatoes purchased fell significantly by 17.2% and 8.9% respectively year-on-year, with Kantar pointing to the impact of supply shortages.
The Kantar analysis found that the market is seeing much stronger own-label growth (11.9%) compared to branded products (6.1%) as shoppers try to save money.
The share of own-label products rose from 42.6% in 2021 to 45% in 2023, while value own-label lines – the very cheapest products – experienced strong year-on-year growth with an increase of 35.8% and an additional €19 million worth of spending.
Online sales remained strong over the 12-week period, 5.2% higher year-on-year, as shoppers spent an additional €8m online.
Dunnes Stores held the highest share of retailers in Ireland at 23.6%, representing a growth of 12.3% compared to the previous year.
Close behind with a market share of 22.9%, Tesco’s shopper footfall was at its highest level since January 2020.
Supervalu held 20.8% of the market share, Lidl 12.6% and Aldi 11.7%.
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