Irish Grocery Sales Increase, But Deflation Continues: Kantar Worldpanel
Irish grocery sales increased by 2.3% in the past 12 weeks, according to the latest figures from consumer research group Kantar Worldpanel Ireland.
However, the figures for the 12 weeks ending 23 April 2017 indicate that deflation is limiting this growth in the grocery market, as supermarket prices in Ireland continue to fall.
“In recent years we have seen a definite shift away from promotional deals towards more consistent, lower prices on everyday items," said David Berry, director at Kantar Worldpanel.
"Just over a quarter of all goods are now bought on promotion – down from 33% in 2014. With the rate of deflation in the grocery market falling even further, we expect to see this trend stick around.”
Seasonal Easter products experienced a growth during this period, with sales of hot cross buns rising by 24%, Easter eggs by 9%, and fresh lamb by 10%.
“Capitalising on the indulgence of Easter, retailers have added more premium options in an attempt to convince customers to put something a little more expensive into their baskets," said Berry.
"Fancier options saw the average price of Easter eggs rise 8 cents to €3.05. With three quarters of the population treating themselves to at least one, this meant a €3 million boost to the market.”
Irish retailer SuperValu retained its position as the largest supermarket in the country for the second period in a row, capturing 22.8% of grocery sales.
Tesco maintained its second place position, but saw a decrease in sales of 0.6%, while Dunnes Stores experienced the strongest growth, with sales increasing by 5.1% compared to the same period last year.
The discounters also performed well, with sales at Lidl increasing by 2.4%, and Aldi by 3%.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.