Hunting in-store grocery deals is becoming increasingly difficult for consumers as the share of products on promotion declines, while grocery price inflation has hit 9.5%, according to Kantar.
The share of groceries being sold on promotion during the 12-week period up until Sunday, August 7, stood at 24.6%, compared to 34.2% in 2010, most recent figures for Ireland show.
“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,” senior retail analyst with Kantar, Emer Healy said.
Some of the biggest price increases are seen in everyday essentials, including butter; milk; flour; eggs; and bread, according to Kantar.
As shoppers seek ways to save money, spending on branded items fell by 3.1% (- €42.6 million), while sales of retailers’ own labels were up by 3.5% and now account for 46.7% of the total grocery market.
The average annual shop could rise by €662 if consumers buy the same products as last year, Healy warned adding that the impact on shopping budgets is now unavoidable for many Irish consumers.
Consumer behaviour
Spending on take-home groceries fell by 0.7% over the 12 weeks, however, value sales were up by 1.6% during the last four weeks for the first time since early 2021, with shoppers spending an additional €14.5 million.
Consumer behaviour analysed by Kantar shows that shoppers are returning to stores more often with an average of 19 trips per consumer over the last four weeks. However, volume sales have fallen by 9.2% as consumers are buying less per trip.
Online grocery shopping remains popular among Irish consumers, with an additional combined spending of €11.9 million. Own-label ranges grew ahead of the market at 21%.
The number of online shoppers increased by 13.2%, which means that now 16.7% of the Irish population buy their groceries online, as it is “easier for shoppers to track their spending, while avoiding their own petrol costs”, Healy said.
Grocery retailers
In terms of total spending across major retailers in Ireland, both Dunnes and Tesco hold a 21.9% share, while Dunnes has the strongest growth amongst all retailers, with a 4.7% rise in new shoppers.
New shoppers have contributed an additional €4.3 million to Tesco’s overall performance, while existing shoppers are visiting more frequently with trips being up 3%, according to Kantar.
SuperValu holds a market share of 21.5%, and is the store that shoppers visit most frequently, with consumers making an average of 21 trips per year.
Lidl and Aldi hold a 13.4% and 12.7% grocery market share in Ireland respectively, according to Kantar.