Grocery inflation hit a record 16.3% in January 2023, according to Kantar.

Take-home grocery sales increased 5% in the four weeks to 23 January, driven by inflated sales value, with average price per pack up 14.6%. Volume per trip fell 13%, reflecting the consumer belt-tightening.

In the 12-week period to 23 January, take-home grocery sales increased 6.8%, which equates to an additional €90.50 per household year-on-year.

Emer Healy, senior retail analyst with Kantar, said annual inflation of 16.3% would result in an extra €1,160 being added to households' annual shopping bills.

Sales of supermarkets' own-label products rose 10.4% compared to 4.7% for branded lines as shoppers kept a tighter grip on the purse strings after Christmas, according to Kantar.

In Association with

"The Irish grocery market is more competitive than ever before, with shoppers looking for the best deals and retailers looking to retain customers," Healy said. "This is reflected by many supermarkets using their loyalty schemes to help shoppers save.

"According to Kantar’s LinkQ data, nearly 38% of shoppers claim to always use a money saving voucher. As a result, the amount bought on promotion has fallen to 27.7%, the lowest level for five years, exaggerating the usual post-Christmas drop off in deals.

"However, government action to help consumers manage cost of living pressures may have bolstered shopper confidence as the number of households who classified their financial situation as struggling fell from 32% in October to 23% in December 2022, with just over half of Irish shoppers (52%) feeling they were managing financially."

In light of New Year's resolutions, shoppers spent an additional €848,000 on vitamins and mineral supplements during the survey period, while sales of meat-free alternatives grew 4%, with an extra €102,000 spent on tofu.

Dry January also saw sales of non-alcoholic beverages grow 4.6%, with 5% of Irish households purchasing a non-alcoholic beverage during January.

Online sales remained strong, growing €8.6m 5.6% year-on-year last month, and a fifth of Irish households are now purchasing online.

Dunnes Stores (23.7%) had the highest share of the Irish grocery market after experiencing sales growth of 10.3%, while Tesco (23.1%) took second place after increasing sales 9.8% compared to a year earlier.

SuperValu (20.9%) lost ground, with sales up just 0.9% year-on-year despite record inflation, with Lidl (11.9%) and Aldi (11.6%) further back. The budget retailers grew their sales 9.9% and 6.8%, respectively.

(Pic: Getty Images)