The rate of increase in Irish grocery prices, according to the latest figures from retail analysts Kantar Worldpanel, is less steeply than at any time over the previous two years. At 3.7 percent, the inflation rate recorded in the three months to mid-last month contrasts sharply with the 16 percent rate registered in the equivalent month last year. These figures suggest that the harshest part of the cost-of-living crisis might be over.
Further backing this up are the recent figures from the Central Statistics Office (CSO) and the EU Harmonised Index of Consumer Prices, which released on Tuesday that food costs have actually dipped by 0.1 percent over the last month and have risen by a modest 2.6 percent over the last year.
The Kantar figures revealed a notable trend in the month of March with easter egg sales. Nearly 50 percent of all Irish households bought at least one chocolate egg, marking a rise of 13.1 percent compared to the previous year. In the lead-up to the recent bank holiday weekend, Irish consumers spent over €24.6 million on easter eggs, a boost of more than €9 million compared to the same time last year.
Consumer spending also soared on other favoured Easter goodies, with a year-on-year increase of 28 percent noted in hot cross buns sales, netting €1.1 million.
Earning through take-home grocery sales witnessed a rise of 4.5 percent in the four weeks to March 17th, with sales totalling €1.1 billion. Compared to the same period the previous year, there was an additional spending of €47.8 million.
Emer Healy, Kantar’s business development director, commented that these figures indicate the eleventh consecutive month of inflation drop, which would be of significant relief to consumers. However, she also pointed out that despite observing the lowest inflation in two years, Irish shoppers still seek value with promotions contributing to over 25 percent of value sales.
This astute affinity for deals from shoppers was clear in easter egg sales, which saw promotions accounting for over 51 percent of value sales of eggs.
In an effort to attract buyers, many sellers are placing a strong emphasis on their own label products. These items noticed considerable growth in sales surpassing the overall market rate at 5.5%, with a yearly increase that held 48% of the market value. This led to consumers spending extra €80.5m compared to the previous year.
High-end store brand ranges kept thriving with buyers investing an additional €172 million in these products, up 12.3 per cent compared to the same period last year.
There was an increase in online sales of 16.7 per cent compared to the previous year, with buyers spending an extra €26.5 million on web purchases.
Dunnes holds a market share of 24 per cent, witnessing a growth of 7.7% annually. Tesco has 22.8 per cent, a 7.5% hike from the previous year. SuperValu holds 20.4% of the market whereas Lidl is at 13.5 per cent and Aldi 11.5 per cent.