Grocery sales up as inflation rate lowers to 15.8%

TAKE-home grocery sales in Ireland increased by 10.8% in the four weeks to June 11, 2023, as the average price per pack increased 14.1%, according to the latest data from Kantar. Shoppers returned to store more often during June (+9.2%) compared to last year, making an average of two additional trips, down slightly compared to May.

While value sales are up this month, grocery price inflation remains the reason behind this. Grocery inflation rose by 15.8% in the 12 weeks to June 11, 2023, which is down on last month’s level of 16.5% and is the lowest level of inflation seen so far this year.

“This latest drop in grocery price inflation will be very welcome news for consumers, although it is too soon to say if this is the ceiling as inflation rates are still much higher than we have previously seen,” noted Emer Healy, Senior Retail Analyst at Kantar.

Over the 12 weeks to June 11, 2023, take-home grocery sales increased by 11%, with consumers turning to shopping little and often to help manage household budgets. The percentage of packs sold on promotion also increased to 25.8% compared to 24.7% last year, showing shoppers are carefully choosing promotional items to help them to make ends meet.

“Irish consumers enjoyed longer, warmer days during the last four weeks and took the opportunity to crack out the barbecues. As a result, they spent an additional €2.9 million on beer and lager, €1.9 million on chilled burgers and grills, and €1.2 million on fresh sausages,” according to Emer Healy.

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With the costof-living crisis bringing change to traditional shopping and eating behaviours, people are also thinking more about what they eat and how they cook at home. As shoppers look for easier meals with less waste, sales of total chilled ready meals shot up by 20%, with shoppers spending an additional €2.9 million yearon-year.

Over the 12 weeks to June 11, 2023, the growth in sales of own label (15%) was almost double that of brands (7.8%) as shoppers look for ways to save money. Value own label saw the strongest growth, up 28.9% year-on-year, with shoppers spending €15.7 million more on these ranges.

Online sales remained strong over the 12-week period, up 2.2%, with shoppers spending an additional €3.5 million on the platform year-on-year. New shoppers boosted overall growth by €6 million, as nearly 17% of Irish households purchased online.

Dunnes, Tesco and Lidl all grew sales ahead of the total market in terms of value this month, with the gap in market share beginning to close between the top two retailers.

Dunnes continue to hold the highest share amongst all retailers, at 22.9%, with

Aldi open two new stores

ALDI recently opened two new stores in Athenry, Co. Galway, and Kanturk, Co. Cork, as part of an €18 million investment, creating 60 permanent jobs. 160 jobs were supported during the construction phases of both new stores.

These stores represent Aldi’s 159th and 160th stores in Ireland and bring the total number of stores opened across Ireland this year to five.

In 2022, Aldi reaffirmed their commitment to expanding their Irish operations, announcing two ambitious expansion plans for the West of Ireland and Dublin. These plans will see 16 new stores across Connacht and the capital by 2027 as part of a €135 million investment, creating 490 permanent jobs with a further 900 supported during construction. These new stores also follow Aldi’s award-winning Project Fresh layout.

growth of 15% year-on-year. This growth stems from shoppers returning to store more often, up 2.1% year-on-year, along with new shopper arrivals up 3.3% yearon-year.

Tesco hold 22.6% of the market with 13.5% growth year-on-year. Tesco have the strongest frequency growth amongst all retailers, up 17.7% year-on-year, contributing an additional €103.6 million to their overall performance.

SuperValu hold 20.7% of the market and growth of 6%. SuperValu shoppers make the most trips in store compared to all retailers, an average of 24 trips, up 15.3% year-on-year.

Lidl hit a record new share of 13.7%, with growth of 15.5% year on year. More frequent trips and new shoppers contributed an additional €45.2 million to the retailer’s overall performance. Aldi hold 12.3% with growth of 10.3% year-onyear. A boost in new shoppers and more frequent trips contributed an additional €49 million to overall performance.