Grocery Sales Strengthen as Food Price Inflation Eases
New industry data shows that grocery inflation in Ireland has slowed to 6.06 percent in the twelve weeks to 2 November, down from 6.6 percent in the previous period. Despite continued price pressures, overall take home grocery sales increased by 5.5 percent in the four weeks to early November, according to figures from Worldpanel by Numerator.
The research highlights that households spent an extra 64 million euro on groceries during the month, with consumers visiting stores more frequently. Retailers have responded to ongoing financial pressures on families by placing a stronger emphasis on value, with promotional activity becoming a major driver of sales. Almost 22 percent of all grocery spending was on promotional offers, a notable increase on last year, and this trend is expected to pick up further as Christmas approaches.
Own label products continue to outperform the wider market, rising by 6.3 percent over the twelve week period. Shoppers spent 99 million euro more on these ranges compared with last year. Premium own label lines remain a standout performer, increasing by 15.3 percent, reflecting an additional 18.5 million euro in spending.
Branded goods also recorded growth, although at a slightly slower pace. Sales rose by 5.2 percent over the same period, with consumers spending an additional 85.4 million euro on branded items. Brands currently hold 48.2 percent of total market value, the highest level since February. Own label ranges account for 46.2 percent of value share.
Several categories saw growth ahead of the overall market, including frozen fruit, low alcohol drinks, hot beverages, confectionery, chocolate, sweet spreads and savoury snacks. Seasonal spending is already evident, with shoppers spending 8 million euro more on boxed chocolates compared with the previous month.
Online grocery shopping continues to expand, rising by 6.4 percent year on year and now accounting for 5.6 percent of the market. Online shoppers spent an additional 13.1 million euro, boosted by a strong increase in new customers.
Among retailers, Dunnes remains the largest player with a 24.6 percent share of the market and annual sales growth of 6.1 percent. Larger baskets and more frequent store visits contributed an extra 26.2 million euro to its performance. Tesco holds a 23.8 percent share, with value growth of 7.7 percent, driven by increased shopper visits and new customers. SuperValu accounts for 19.4 percent of the market, supported by high visit frequency and additional spending from newly recruited shoppers.
Lidl continues to be the fastest growing retailer, with sales rising 9.6 percent and volumes increasing by 2.1 percent, contributing an extra 9.5 million euro to its results. Aldi holds an 11.2 percent share and saw sales rise by 3.8 percent, with higher store visits and new shoppers adding 9.9 million euro to performance.
Disclaimer: This article is based on publicly available information and is intended for general guidance only. While every effort has been made to ensure accuracy at the time of publication, details may change and errors may occur. This content does not constitute financial, legal or professional advice. Readers should seek appropriate professional guidance before making decisions. Neither the publisher nor the authors accept liability for any loss arising from reliance on this material.