According to the latest figures from Kantar Worldpanel, a firm engaging in retail analysis, the increase in grocery prices are at the smallest pace since the period immediately following the Ukraine conflict initiated by Russia. The data revealed that the current inflation rate in Irish supermarkets stood at 2.6 per cent, which is a significant contrast to the rate that went over 13 per cent during the same time frame last year and descended from a maximum of over 16 per cent during the severest cost of living crisis.
Kantar has concluded that inflation has plunged for the thirteenth month in a row and is currently at the lowest since March 2022. While this is positive news, Emer Healy, Kantar’s director of business development, pointed out that more than a quarter of Irish value sales are still linked to promotions as consumers continue to hunt for deals.
She noted that supermarkets were focusing on promoting their own brand products to attract more customers. The sale of own brand products is actually outpacing the growth of the overall market, registering a rise of 5.7 per cent on a yearly basis, with an extra €86m being spent year-on-year.
Data reveals a surge in supermarket spending in May, with grocery sales witnessing a 4.7 per cent rise in the lead up to the middle of the month. Healy also pointed out the strong performance of premium own brands, which saw a year-on-year increase of €18.4m, or an impressive 12.6 per cent from last year.
Meanwhile, there was a 4 per cent growth in branded product sales adding an extra €59m in shopper expenditure over the past 12 weeks, although this was slightly slower than the overall market growth.
As the summer season kicked in, Irish consumers rang it in by capitalising on the weather to enjoy barbecued delights. An additional sum of €614,000 was spent on sausages, €497,000 on chilled burgers and grills, €454,000 on prepared chilled salads and a whopping €3.4 million on soft drinks as an attempt to optimise the sunny time.
Beer and wine sales also jumped 4.1 per cent with consumers spending an extra €2.7 million compared to the previous month.
Regarding the continuous supermarket contests, Dunnes maintains a market segmentation of 23.7 per cent that is expanding at a yearly rate of 7 per cent. Tesco occupies 23 per cent of the market, showing a yearly increase of 7.1 per cent. SuperValu sustains a market segment of 20.4 per cent, rising at 3.7 per cent annually. Lidl has a market share of 13.8 per cent, indicating a yearly increment of 6.1 per cent. On the other hand, Aldi commands an 11.6 per cent market portion.