Grocery inflation in Ireland has reached 7.7%, the highest level recorded since 2008, according to data published today (Monday, July 25) by Kantar.
That is despite the figures showing that consumer spending on take-home grocery sales in Ireland fell by 3.1% over the 12 weeks to July 10, 2022.
Kantar outlined that inflation remains “a key challenge” for retailers, manufacturers and brands.
Consumers have been able to combat some of the effects of inflation through choosing cheaper products, but the average price paid for each item has still increased by 6.3%.
Brands’ share of grocery spend has dropped to 47.6%, from 49.6% in 2020, with shoppers spending €72 million less on branded goods year-on-year.
Sales of own label goods grew 1.5% over the last 12 weeks, with shoppers spending €19 million more year-on-year.
In particular, consumers are turning towards the value ranges within own label, with sales jumping 9.7% as shoppers spent €4.8 million more year-on-year.
Commenting on the latest data, Emer Healy, senior retail analyst with Kantar, said:
“We are seeing rising costs on many fronts, and shoppers’ weekly grocery bill is no exception to the rule. Food and drink prices are continuing to climb, and the impact of this on shopping budgets is now unavoidable for many consumers.
“Consumers are now making two less trips to the supermarket on average compared to this time last year,” Healy noted.
Despite challenging circumstances, she said that shoppers embraced the good weather of recent weeks and got out the barbecue.
Over the past four weeks shoppers spent an additional €540,000 on take-home savouries, €1.5 million on soft drinks, €170,000 on chilled burgers and grills and €656,000 on fresh sausages.
Due to rising prices, Healy said that the cost of hosting a barbecue has increased on average 7.4% over last year.
Online grocery sales in July were up 15%, with shoppers spending an additional €6 million, compared to last year. Online sales of own label goods saw a massive 21% boost.
Tesco now holds a 22% share of total grocery market spend in Ireland, recording growth of 0.1% in the last 12 weeks after welcoming four million additional shoppers.
Dunnes has a 21.9% share of spend, having grown 1.5% over the last 12 weeks, which contributed an additional €23 million to its overall sales performance.
With a 21.5% share, SuperValu continues to see shoppers returning to its stores more often than any other retailer.
The data shows that Lidl has 13.5% of the market, adding €13.6 million to its overall performance. Aldi boosted its shopper based by 1% to leave it with a share of 12.6% share.