Fresh data collected by Kantar Worldpanel, a retail analysis firm, indicates that over the 12 weeks leading up to the start of this month, the annual grocery price inflation rate in the Republic has stabilised at just under 3%. This 2.8% rate is significantly less than the nearly 17% seen during the peak of the living cost crisis, marking a drop of 8.5 percentage points from the same timeframe the previous year. This rate, however, has seen a slight increase from the 2.5% observed earlier in the summer.
On the approach to the back-to-school season, the data suggests a rise in supermarket spending by the Irish public, with a 5.4% increase in grocery take-home sales in the month leading up to September 1st. Kantar Worldpanel’s Director of Business Development, Emer Healy, noted the shift in shopping patterns, presumably due to the need for packed lunches and after-school meals following the end of summer.
Healy also suggested that expenditure on items such as biscuits, bread and cheese saw a notable surge, along with a rise in spending on chilled convenience food items compared to August. Furthermore, customers were identified as utilising promotional offers from retailers more frequently, showing a 9.6% increase compared to the same period the previous year.
Consumers have also taken a liking for retailers’ own brand products, with a 4.5% sales increase year-on-year stating a value share of 47%. This indicates an extra €66.8 million spent on these ranges in comparison to last year. Premium lines have also maintained strong sales, bringing in an extra €14.2 million in spending, a 10.2% increase on last year.
Despite the preference for own-brand goods, branded products have seen a surge in sales due to recent heavy promotion by large retailers. This has resulted in a total growth rise of 8.4%, seeing customers spend an additional €121 million compared to last year. Promotions accounted for the sale of over 60% of these branded items, reflecting a 9.8% increase from the previous year.
Finally, online sales also saw a significant boost with a 10.7% increase, meaning shoppers have spent an extra €18.2 million year-on-year through this medium.
In the realm of retail competition, Dunnes claims a 23.6% slice of the market, bolstered by an impressive 9.4% growth year by year, just edging out Tesco’s 23.5% stake which grew by 10.4% annually. Just a month ago, both stood evenly at a 22.6% market share. Meanwhile, Supervalu’s challenging year is evident with their market share currently at 19.9%, a decrease of a full percentage point within a month. As for the discount rivals, Lidl holds a comfortable lead holding 13.7% of the market with a growth rate of 6.9% yearly, compared to Aldi’s 11.8% market portion with a mere 1% annual growth.