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Grocery sales down 6.5% as shoppers turn to own-brand items

Irish Shoppers
/ 30th May 2022 /
George Morahan

Grocery sales declined 6.5% in the 12 weeks to mid-May as shoppers adjusted to price inflation of 5.5%, the first time grocery price inflation has risen above 5% since August 2013.

Research conducted by Kantar shows that the cost of living is now a key concern for 81% of Irish consumers, with 62% expecting that they will have to cut back on the amount of food they buy due to higher prices.

David Berry, managing director of Kantar Worldpanel Ireland, said the market will see the effects of inflation for months to come, and that shoppers are turning to cheaper alternatives.

"People are now making four fewer trips to the supermarket on average per month than they were this time last year. Similarly, branded items – a firm favourite when we were treating ourselves more during the COVID-19 lockdowns – previously made up more than 50% of grocery sales in 2020 and 2021," Berry commented.

"We’re now seeing clear signs that people are turning to retailers’ own-label items instead, which are usually less expensive. As a result, brands’ share of grocery spend has dropped to 49% in the latest 12-week period, which is equivalent to a €29m fall.”

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Ahead of the June bank holiday, sales of barbecue meats like burgers and sausages and prepared salads have risen 2% and 8%, respectively, while an extra €5m worth of soft drinks have been sold, equivalent to a 5% bump.

"It’s likely that sales of these items will keep rising as we make the shift to more summery foods and leave the soups and stews behind, but prices are going up too," Berry added. "A trip to the supermarket to buy BBQ meat, salad, and soft drinks will now cost you €1 more on average in total than it would have last year.”

Dunnes Stores retained its position as the number one supermarket in terms of market share (22.3%) for the sixth consecutive period this year, with 98,000 new shoppers in the latest period increasing its share by 1.2 points year-on-year.

Tesco (21.9%) has pulled ahead of SuperValu (21.7%) for second place, with Tesco shoppers bucking the trend by visiting more often, while Lidl holds a 13.1% share and Aldi claimed 12.2% of the market.

(Pic: Getty Images)

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