Kantar puts grocery inflation at 7.7%

Consumer spending on take-home grocery sales in Ireland fell by 3.1 per cent over the 12 weeks to July 10. The decline has slowed over the latest four weeks, with a drop of 0.9 per cent. Despite a fall in spending, grocery inflation stands at 7.7 per cent, the highest level seen since August 2008. Inflation remains a major challenge for retailers, producers 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 per cent. Kantar’s senior retail analyst Emer Healy said food and drink prices continue to climb and the impact of this on shopping budgets is now unavoidable for many consumers.

Shoppers are changing their behaviour to manage these rising costs by turning towards cheaper alternatives and reducing their shopping frequency. Consumers are now making two less trips to the supermarket on average compared to this time last year. To mitigate rising prices, shoppers are turning to own label which tend to be less expensive.

Own label

Brands’ share of spend has dropped to 47.6 per cent, from 49.6 per cent in 2020, with shoppers spending €72 million less on branded goods year-on-year. Sales of own label goods grew 1.5 per cent over the last 12 weeks, with shoppers spending €19m more year-on-year. Sales of own label at Tesco, Dunnes, Lidl and the online retailers grew by 21.1 per cent in all.

Tesco now has a 22 per cent share of total grocery sales. Dunnes has a 21.9 per cent share of spend, which contributed an extra €23.2m to its overall performance. Lidl, holding a 13.5 per cent share, added €13.6m to its overall sales. SuperValu, with a 21.5 per cent share, continues to see shoppers returning to its stores more often than any other retailer.

Aldi, with a 12.6 per cent share, boosted its shopper base by one percentage point.

Online sales were up 15 per cent, with shoppers spending an extra €6.1m compared to 2021.

 

 


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