Uncertainty around Christmas means shoppers are behaving differently, according to the latest figures from Kantar.
For the period ending October 4, the figures show that Dublin has seen the strongest regional growth, as sales of groceries in the capital jumped by almost 20%.
Emer Healy, retail analyst at Kantar, said that while growth over the past three months has slowed compared with the “dizzying heights of lockdown”, consumers spent over €100 million more on groceries in the past four weeks versus this time last year. A further boost is expected as restrictions tighten.
Healy continued:
“With Dublin under Level 3 since mid-September, consumer trends in the capital could paint a picture of what’s to come for the rest of the country as more measures to control the virus come into force.
Dublin saw the strongest regional growth this period, increasing sales by 19.4% and contributing an additional €48.2 million to the total market year on year.
“Restrictions on pubs and restaurants meant sales of alcohol soared by over 53% in the past month.
“Shoppers returned to lockdown pastimes including recreating restaurant and holiday favourites at home, with sales of international ingredients rising by 25%.”
Lidl fastest growth of all retailers in Dublin
Lidl, with its “strong store footprint in Dublin”, as described by Healy, helped it achieve the fastest growth of all the retailers this period at 19.1%, as shoppers in the capital spent an additional €57.3 million in store.
Aldi grew sales by 11%, largely driven by customers buying more and spending an average of €36.46 more per shopper in the latest 12 weeks.
Larger trips contributed an additional €63 million to Dunnes’ overall spend, while shoppers picking up 13.3% more items in store in SuperValu helped it to grow ahead of the market at 15.6%.
Tesco holds a 20.9% market share this period. Growth was driven by shoppers adding extra items to their baskets, with volumes up 21%, and the percentage increase in average spend at Tesco was the highest among all the retailers.
Following the record-breaking growth seen last period, online grocery sales remain high, increasing by over 75% in the four weeks to October 4.
Feeling festive?
With Christmas approaching, retailers have been introducing deals on products like seasonal chocolates and advent calendars. Healy said that “while grocers are feeling festive, it is a different story for Irish shoppers”.
“There is a lot of uncertainty around what Christmas will look like this year and, as a result, people’s behaviour is very different from what we would normally expect,” Healy continued.
In the latest three months, consumers spent €1.8 million less on tubs and tins of chocolate than this time last year.
“But that’s not to say we have lost our sweet tooth. The trend of seeking out little luxuries while we’re all spending more time at home has continued. Nine in 10 Irish households purchased chocolate almost every week over the past three months.”