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Households adjust spending as grocery price inflation nears 5% in May

Inflation
/ 3rd June 2025 /
George Morahan

Grocery price inflation for the 12-week period to mid-May rose 2.4 percentage points year-on-year to 4.96%, according to Kantar.

The value of take-home sales in the four weeks to 18 May increased 6.6% from the same period in 2024 as shoppers headed to the supermarket an average of 22.3m times, contributing an additional €17m in sales.

“Rising prices are influencing both sales performance and consumer behaviour,” according to Emer Healy, business development director at Kantar.

“Although households have been adjusting their spending for some time now, what we’re seeing is a clear ‘tipping point’ when inflation goes above 3% to 4%.

"This is when shoppers really start to feel it in their wallets, and they change their behaviour.

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“As a result, supermarkets are having to be more creative in the way they attract shoppers in-store and online – offering quality products at the right price.”

Shoppers spent an additional €124m or 17.6% on promotional lines over the past 12 weeks compared to last year, driven by categories such as table sauces, skin care, deodorant, soft drinks, frozen confectionery and chocolate.

Sales of both brands (+5.6%) and own label items (+5.2%) increased strongly, with shoppers spending an extra €174m on these ranges. compared to last year.

Brands still hold a higher value share of the total market at 47.4%, compared to own label with 47.1% value share.

With double-digit growth (+12.6%) over the 12 weeks, premium own label continues to grow faster than the market as a whole (+6.1%).

Premium own label currently holds 4.1% value share of the total market compared to 3.9% last year.

“Irish shoppers enjoyed a warm and sunny start to May,” said Healy.

“With many firing up the BBQ and dining alfresco for the first time this year, shoppers spent an additional €14m on typical summer fare, including sausages, coleslaw, antipasti, potato salad, non-alcoholic drinks, fabs & mixers, pickles, beer & cider and ice cream.

"With shoppers taking full advantage of the sunshine, we saw an additional €50,000 spent on suncare compared to this time last year.”

During the latest 12-week period, Dunnes Stores held a 23.8% market share, with sales growth of 7.2% year-on-year.

Dunnes shoppers picked up more volume per trip, up 0.7%, alongside making more frequent trips, up 1.8%, which contributed a combined €20.2m to their overall performance.

Tesco held 23.3% of the market, with value growth of 7.1% year-on-year. Shoppers increased their trips to store by 5.3%, which contributed €41.3 million to overall performance.

Grocery Inflation
Dunnes Stores remains the largest supermarket in Ireland in terms of market share. (Pic: Getty Images)

SuperValu held 20.3% of the market with growth of 5.4%. Consumers made the most shopping trips to this grocer, averaging 24.9 trips over the latest 12 weeks, helping to contribute an additional €38.9m to its performance.

Lidl held 13.8% market share, up 6.3%. Larger trips drove an additional €12.9m in sales. Aldi held 11.7% market share, up 6.8%. Increased trips to store and new shoppers drove an additional €24.2m in sales.

(Pic: Getty Images)

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