Take-home grocery sales in Ireland increased by 6.6% in the four weeks to 7 July 2024, despite the fact that summer has yet to make an appearance. According to the latest data from Kantar, grocery price inflation is driving value sales growth rather than increased purchasing. There was an increase in shopping frequency in July, up 3.2%.
With a month of sports already behind us and more to come when the Olympics kick off, Irish consumers are getting into the spectator spirit and are hosting family and friends for these events. Sales of savoury snacks, chocolate, wine, and cider were up during July, with shoppers spending a combined €12 million on these items compared to the previous month.
Grocery inflation in the 12 weeks to 7 July 2024 stands at 2.6%, a small increase of 0.14 ppts over last month but the first time that inflation has risen after a consistent 15-month decline.
Emer Healy, Business Development Director, Kantar, explains: “Although there has been a slight increase in inflation, it’s still the lowest level we’ve seen since March 2022 and down 11.8 ppts compared to July 2023. It means that shoppers in Ireland remain on the lookout for value deals in the market with over 25% of value sales on promotion. With retailers keen to push their own label products, we’ve seen strong sales this period with shoppers spending an additional €67.8 million year-on-year and total market growth of 4.5% on these ranges.”
Premium own label ranges performed strongly as shoppers spent an additional €15.5 million on these lines, growth of 10.8% compared to this time last year. Brands grew ahead of the total market in the latest 12 weeks, up 6%, with shoppers spending an additional €86.3 million on branded products versus last year.
Lack of sun fails to dampen consumer spending on barbecue and summer fare
Colder weather this year means that people are not spending as much on the usual barbecue and summer fare. In the last four weeks, we saw shoppers spend a combined €800k less on chilled salads, burgers and grills and steaks than this time last year, turning to soups and hot beverages instead. A combined €1.8 million more was spent on these items compared to last year.
Online sales were up 12.1% year-on-year, with shoppers spending an additional €19.2 million on the platform. An increase in volume per trip alongside recruiting new shoppers contributed a combined 12.5 million to the platform's overall growth.
Irish retailer performance update
Dunnes holds 23.2% market share with growth of 7.2% year-on-year. Dunnes growth stems mainly from more frequent trips and larger trips, which contributed a combined €42.7 million to its overall performance.
Tesco holds 23.1% of the market, up 7.5% year-on-year. Tesco has the strongest trip frequency growth amongst all retailers for another consecutive month, up 6.7% year-on-year, contributing an additional €46.4 million to its overall performance.
SuperValu holds 20.4% of the market with growth of 3.2%. SuperValu shoppers make the most trips in-store when compared to all retailers, an average of 21.6 trips. The retailer also saw the strongest growth in volume per trip amongst all retailers, up 5.1%, while welcoming new shoppers into stores, which contributed a combined additional €50.2 million to overall performance.
Lidl holds 13.9% share with growth of 4.9% year-on-year. More frequent trips contributed an additional €36.8 million to their overall performance. Aldi holds 12% market share with growth of 0.6% year on year. More frequent trips and new shopper arrivals contributed an additional €11.6 million to its overall performance.
