The speed at which grocery prices are climbing has more than doubled over the last 12 months with the latest data putting year on year supermarket inflation at just under 5 per cent.
This time last year there was a degree of optimism that the worst of the cost of living crisis had passed with Kantar Worldpanel suggesting grocery inflation was running at 2.4 per cent, down from highs of close to 17 per cent it had recorded at the height of the price spiral in the summer of 2023.
However, its latest figures put the rate of inflation at 4.9 per cent. If spread over the course of a year, price hikes of that scale could add close to €400 on to a typical household’s grocery spend.
The research also suggests the value of sales over the four weeks to April 20th increased by 8.4 per cent compared to the same period last year.
“Despite average prices continuing to rise, it’s clear that Irish consumers are still treating themselves,” said Kantar’s business development director Emer Healy.
“With Easter falling late this year, it’s been a real boost for retailers who have benefited from special occasions including St Patrick’s Day, Pancake Day, Easter and the forthcoming May bank holiday.”
She noted that over the latest 12-week period, an additional €15.3 million was spent on seasonal Easter confectionery, with 82 per cent attributed to Easter eggs alone.
Sales of Easter eggs were up 6.6 per cent, with over 64 per cent of Irish households buying one this year. with 43 per cent of all sales made on promotion.
Promotional sales were not just for Easter Eggs with the total grocery market in Ireland seeing an increase in promotions by 15.4 per cent in the 12-weeks with shoppers spending an additional €109 million on promotional lines versus the same period last year.
Promotional sales currently hold 22.8 per cent of total grocery spending compared to 20.8 per cent last year.
“Price influences decisions, but it’s clear that Irish shoppers still cherish quality, particularly when it comes to special occasions,” said Ms Healy. “This is evident with both branded and premium own label products growing faster than the market as a whole.”
Kantar data shows that shoppers spent an additional €102 million on these two ranges compared to last year.
Brands continue to hold a higher value share of the total market with 47. per cent while own label holds 46.9 per cent.
April also saw a steep increase in alcohol sales, up 8.7 per cent year-on-year while brighter and warmer days also boosted the performance of typical barbecue choices.
When it comes to the store wars, Dunnes held 24.1 per cent of the market as of April 20th with sales growth of 6.5 per cent year-on-year. Tesco was on 23.4 per cent with growth of 7.1 per cent. SuperValu was in third place with 20.3 per cent of the market with growth of 5.2 per cent.
Lidl holds 13.5 per cent market share up 5.3 per cent while Aldi was on 11.5 per cent up 5.6 per cent.
