Inflation stood at 2.5% in the 12 weeks to 9 June 2024 – an incredible 13 percentage points below its position in June 2023 – Kantar reported today.
This is also the lowest inflation level since March 2022.
Take-home grocery sales in Ireland increased by 3.4% in the four weeks to 9 June 2024, but barbecue products suffered, as sales increased for winter warmers.
The market research firm reported a boost in store trips – up by 1.5% – as well as an increase of 1.3% in average prices.
However, volume per trip fell and went down by 1.2%, compared to the same period last year, making a change from last month’s small rise of 0.2%.
As in previous months, the continued fall of inflation offers shoppers something of a lifeline, in terms of lower prices.
Despite this, consumers in Ireland still seek value, with over 25% of value sales for the period purchased on promotion.
Market Leaders
Dunnes Stores, once again, holds the highest market share in Ireland, at 23.4%, with 6.2% growth, year on year.
The retailer’s growth mainly comes from more frequent and larger trips, which contributed a combined €20.8 million to its overall performance.
It was followed by Tesco, with 23.1% of the market, with the same growth as Dunnes, at 6.2%, year on year.
Trip frequency to Tesco went up by 7.2%, year on year, which contributed an additional €51.1 million to its overall performance.
SuperValu comes next, with 20.5% of the market and 2.8% growth, as well shoppers making the most trips in store when compared to the other retailers with an average of 21.6 trips.
The Musgrave-owned group also saw the strongest growth volume per trip among all retailers – up by 8.3%.
SuperValu was the only retailer to draw in a significant amount of new customers in the latest 12-week period, contributing a combined €66.3 million to its performance.
Lidl holds 13.9% of the market, followed by Aldi, with 11.8%.
Lidl saw the most frequent trips among the retailers, contributing an additional €38.5 million, while Aldi saw frequent trips contributing €12.2 million to its overall performance.
Growth for the retailers was 5.6% and 0.0%, respectively.
Private Label, Branded, And Home-Grown
Sales of own-label products performed well, growing ahead of the total market, at 4.9%, year on year, and holding value share just over 48%.
Shoppers spent an additional €73.5 million, year on year, on private label.
Premium own-label ranges continue to perform well, with shoppers spending an additional €16.8 million on these lines – up by 11.4%, compared to last year.
However, sales of brands also performed well – up by 3.9% over the 12 weeks – with shoppers spending an additional €57.9 million on branded lines.
Speaking about Irish shoppers’ preferred brands, the business development director at Kantar, Emer Healy, said, “The great news is that Irish consumers value home-grown brands.
“Our latest Brand Footprint report shows that four out of the top five most-chosen brands in Ireland are Irish brands, with the average Irish household buying a portfolio of 77 FMCG brands in a year – well above the global average of 66.
“This shows clearly how brands are still an important choice for Irish consumers.”
Online sales went up by 16.3%, year on year, with shoppers spending an additional €26.2 million in that sector.
‘Less Than Typical’
On the full results, Healy said, “With less-than-typical sunny weather this June, it meant shoppers were not cracking open the barbecues or dining outdoors.
“As a result, they spent a combined €1.6 million less on chilled salads, burgers, grills and sausages than this time last year.
“We did see some bank holiday weekend indulgence, with sales of savoury snacks, confectionery, and beer and lager up 16%, 11.9% and 13.1%, respectively.
“However, there was an increase in soup sales and home baking, which added €1 million and €500k to the tills, respectively.”
Read More: Innovation And Marketing Driving Brand Growth In Ireland – Kantar
