TL;DR: Annual grocery price inflation has dipped to 4.77%, with shoppers spending more on summer essentials as the warmer weather kicks in. The latest figures reveal that supermarket sales are up, with Dunnes Stores leading the pack, despite shifting preferences in consumer purchases.
The latest data from Worldpanel by Numerator highlights a notable decline in annual grocery price inflation to 4.77% in the 12 weeks leading up to June 14, down from 5.51% in May. This marks a promising trend as inflation has decreased for the second consecutive month, further easing from April’s peak of 6.7%. The drop appears to coincide with the arrival of summer, prompting shoppers to indulge in seasonal must-haves.
Take-home grocery sales during this period climbed by 4.8% compared to last year. Eimear Faughnan, Head of Retail at Worldpanel by Numerator, pointed out that the June spike in sales was buoyed by another bank holiday and the much-anticipated start of the World Cup. “Barbecues fired up across the country,” she noted, “with shoppers spending over €502,000 more on chilled burgers and grills, alongside an additional €775,000 on prepared salads.”
Interestingly, the pattern of spending showcased a shift in consumer preferences. While brand loyalty is high—with branded goods capturing 49.1% of shopper baskets—the range of drinks has broadened significantly. Spending on flavoured alcoholic drinks and mixers saw an increase of €2 million, yet beer and cider revenue took a hit, declining by €3.3 million compared to the previous month. Perhaps consumers are opting for fancier cocktails at home instead of the reliable pint at the pub?
Additionally, soft drinks grew by €2.9 million, water and squash by €1.27 million, and ice-cream sales added a sweet €4.2 million—because who doesn’t love a cold treat on a sunny day? And let’s not forget the suncream, which saw an uptick of €2.2 million as Irish shoppers prepare to brave the UV rays.
Dunnes Stores has notably solidified its position as the largest supermarket, holding a 23.8% market share with a 4.9% increase in sales, attributed to higher footfall and more frequent visits. Tesco trails closely behind with a market share of 23.6%, growing its shopper base by 2.3% and translating that into €18.9 million in sales. SuperValu follows in third with 19.5%, reaping €17.4 million from new customers. Lidl edges ahead of Aldi, commanding 15% of the market share versus Aldi’s 11%.
Online grocery shopping continues to surge, emboldening consumers with a 16.8% year-on-year increase in value, as more people discover the convenience of ordering from home—who can resist doing the weekly shop from the comfort of the couch?
It’s clear the focus is shifting; shortages from earlier in the year, particularly around some branded goods, have shaken the market. Promotional spending reached its zenith this year at a jaw-dropping 23.5%, showcasing how discounts are catching sleight-of-hand with budget-conscious shoppers eager to pocket savings while stockpiling summer treats.
As we revel in this shopping spree fueled by longer days and less inflationary pressure, one can only wonder: are we seeing the dawn of a new consumer era, where outdoor dining becomes the norm? It’s always a pleasure to watch how tastes evolve with the season—not to mention how our wallets adjust to accommodate them.
Here’s an interesting fact: Did you know that in 2022, the average Irish household spent about €30 a week on groceries alone? With shopping patterns rapidly changing, who knows what next year’s figures will bring?
For more insights, you can read the full report at Irish Examiner.
