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Retail

Irish Shoppers Cut Down On Branded Groceries, Own-Label Sales Rise: Kantar

Irish shoppers spent €42.6 million less on branded groceries in the latest twelve weeks ended 7 August 2022, while own-label sales accounted for 46.7% of the total Irish grocery market, according to the latest data from Kantar.

Overall spending on take-home groceries fell slightly by 0.7% in the 12-week period, with value sales growing 1.6% in the last four weeks - a first since February 2021 – as shoppers spent an additional €14.5 million.

Shoppers returned to stores more often, with the number of shopping trips increasing by 2.3% to an average of 19 per consumer over the latest four weeks.

However, volume sales fell 9.2%, indicating that they bought fewer items per trip.

Price Rise

Emer Healy, senior retail analyst with Kantar, commented, “Food and drink prices are continuing to climb, with consumers paying 8.1% more per item during the month of August than they were last year. The impact of this on shopping budgets is now unavoidable for many Irish consumers.”

The sales of branded items declined by 3.1% in the latest weeks as shoppers turned to private-label goods.

Within own label, sales of value ranges saw the highest growth (+14.7%).

Emer Healy added, "Everyday essentials such as butter, milk, flour, eggs and bread are seeing some of the biggest price rises.

"This rise means that the average annual shop could rise by a staggering €662 if consumers buy the same products as they did last year. It is no surprise that we are seeing Irish shoppers making lifestyle changes to deal with the extra pressures on their household budgets."

Potential Recession

Despite the recent growth in spending, grocery inflation hit 9.5% in this period, reaching the highest level seen since July 2008.

As Ireland faces a potential recession later this year, differences between the current situation and the last economic downturn in 2008 are becoming clear, Kantar noted.

For example, consumers are finding it difficult to locate deals in-store as the percentage of groceries sold on promotion in the last 12 weeks dropped to 24.6%, compared to 34.2% in 2010.

Other Trends

Elsewhere, online shopping grew by 8.9% in the latest 12 weeks as shoppers spent an additional €11.9 million on take-home groceries, with own label ranges growing ahead of the market at 21%.

Emer Healy said, “Online shopping makes it easier for shoppers to track their spending, while avoiding their own petrol costs. It is no surprise that online has welcomed a 13.2% increase in new shoppers, with 16.7% of the Irish population now purchasing groceries online.

"When shoppers are online they continue to put more items in their basket than they do in-store, with year-on-year volume growth up 3.6% in the last 12 weeks, though they are shopping less frequently, with online ‘trips’ down 12%.”

Read More: Irish Consumer Sentiment Hovers At 22-Month Low In August

Top Retailer

Dunnes Stores and Tesco emerged as Ireland's top retailers with a 21.9% market share.

Dunnes witnessed the strongest growth amongst all retailers, with sales value increasing by 4.5% and new shoppers by 4.7%.

Tesco'e overall performance was boosted by new shoppers contributing an additional €4.3 million, while trips from existing shoppers increased by 3%.

SuperValu's market share stood at 21.5%, with shoppers making an average of 21 trips per year.

Lidl held a market share of 13.4% share, boosting its penetration by 3.8% and contributing an additional €13.6 million to its overall performance.

Aldi's market share stood at 12.7% and new shoppers added €4.2 million to its overall sales, while trips from existing shoppers increased by 3.6%.

© 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.

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