Grocery price inflation in Ireland reached its highest level (1.7%) since October 2020 in the most recent 12-week period, putting household budgets under pressure, according to the latest data from Kantar.
According to senior retail analyst at Kantar, Emer Healy, the number of products sold on promotion dropped by 3% in January compared to last year.
“We’re already seeing evidence of people starting to shop around at different retailers to try and find the best price for their weekly shop,” she added.
Grocery Sales
Take-home grocery sales declined by 4.5% year-on-year in the 12 weeks to 23 January 2022. However, it was 11.2% higher than two years ago before the pandemic.
Shoppers spent an additional €14.5 million on chilled convenience items, while sales of deodorant and men’s skincare soared 3.8% and 6.5%, respectively.
Healy commented, “Life is returning to some normality in Ireland and grocery sales have dropped year on year as people take the chance to eat out in pubs, cafés and restaurants again. We can see the impact of these busier social calendars in people’s baskets.”
Online grocery sales saw 3.8% growth, with consumers spending €5.4 million more than the same period last year.
Shoppers bought 13.3% more on each trip to the supermarket compared to early 2020 as many are still less likely to go out for lunch as they are working from home for a part of the week.
Dry January Trends
Dry January saw ‘record-breaking engagement’ in Ireland, according to Kantar, with 7.6% of households purchasing a non-alcoholic beverage – an increase of 5.8% since 2018.
The impact of Veganuary, on the other hand, was more muted, as shoppers spent €481,000 less on frozen vegetarian products than this time last year.
Healy explained, “Non-alcoholic drinks are enjoying really strong growth and this looks set to continue following the introduction of minimum unit pricing in Ireland.
“Dry January gave people the perfect opportunity to explore the different options on the supermarket shelves and many traditional brands are diversifying their ranges to keep up with the change in demand.”
Top Retailers
Dunnes Stores retained its position as Ireland’s top retailer with 23.1% market share in the period up to 23 January 2022.
The retailer benefited from new shoppers, contributing an additional €42.2 million to its sales.
SuperValu emerged second with a market share of 22.2%, followed by Tesco at 22.1%.
Lidl and Aldi held a market share of 11.8% and 11.6%, respectively, for the period.
Read More: 'The Worst Is Yet To Come' On Food Inflation, Tesco Chairman Warns
© 2022 European Supermarket Magazine – your source for the latest Retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
