Irish grocery price inflation has dropped to 9.8% this month, which is the first time single figures have been recorded so far this year, latest Kantar data has shown.
This is the sixth consecutive monthly decline, however inflation remains high, according to business development director at Kantar, Emer Healy.
The current level of grocery inflation is now 0.7% below last month and at the lowest level since September 2022. A continued decline is expected over the coming months.
The general outlook is slowly starting to improve for consumers, with Kantar’s latest pressure group survey showing that 16% of Irish households expect their finances to improve in the next 12 months.
As the festive season approaches and Christmas hits the supermarkets early, consumers are already reaching for more branded and premium own-label products.
Grocery trends
Take-home grocery sales increased by 7.2% in the four weeks to October 29, 2023. Shoppers visited stores 20.1 times on average in October, up 3.6%. Volumes per trip fell by 5.9%.
A total of 24.8% of sales are sold on promotion, which is up 6.9% year-on-year and the highest level since August 2023. Own-label value share stands at 47.5%, with brands holding 47.4%.
Sales of own-label goods were up 11% over the last 12 weeks, compared to brands at 6.2%. Premium own-label range sales rose by 12.1%, with shoppers spending a further €14.8 million year-on-year.
“It looks like shoppers may be trying to temper their spend and seek savings now through own-label lines so they can splurge on the upcoming holiday season,” Healy said.
Online sales remained strong over the 12-week period, up 28% year-on-year with shoppers spending an additional €39.6 million on the platform, Kantar figures show.
Retailers
Dunnes holds 23.7% of the market share in terms of value with growth of 10.8% year-on-year and a boost in new shoppers contributing an additional €23.9 million to its overall performance.
Tesco holds 22.5% of the market with 11.3% growth year-on-year. The retailer had the strongest frequency growth among all retailers at 13.1%. New shoppers contributed €81.7 million.
SuperValu holds 20.6% of the market with growth of 6%. Shoppers made the most trips in store amongst all retailers. Higher volumes per trip contributed an additional €32.6 million.
Lidl holds 13.5% share with growth of 10.7% year-on-year, while Aldi holds 12.1% with growth of 2.6%. More frequent trips added €43.1 million and €25.9 million to their performance respectively.