Summery foods are rare bright spot for grocery sales as inflation bites

The weather may be less than impressive so far, but supermarket sales of barbecue meats, soft drinks and prepared salads have climbed in recent weeks as shoppers prepare for summer socialising, the latest grocery market figures from Kantar show.

Sales of burgers and sausages are up 2 per cent, sales of soft drinks are up 5 per cent and sales of prepared salads have risen 8 per cent over the 12 weeks to May 15th, Kantar said. The rise in soft drink purchases alone equates to an extra €5 million through the tills, the market research company added.

“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,” said David Berry, managing director for Kantar Worldpanel Ireland.

“A trip to the supermarket to buy barbecue meat, salad and soft drinks will now cost you €1 more on average in total than it would have last year.”

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Overall, take-home grocery sales fell 6.5 per cent year on year in the 12-week period, as Irish shoppers adjusted to increased prices.

Grocery inflation hit 5.5 per cent in the period, which was the first time it has risen above 5 per cent since August 2013.

“Food and drink prices are continuing to climb, and the impact of this on grocery budgets is now unavoidable for many people,” he said.

Previously published Kantar research, conducted with 1,002 consumers on behalf of Permanent TSB, shows the rising cost of living is a key concern for 81 per cent of Irish people, while 62 per cent expect they will have to cut back on the amount of food they consume as a result.

“We’ll be seeing the effects of inflation for months to come,” Mr Berry said.

“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 per cent of grocery sales in 2020 and 2021. We’re now seeing clear signs that people are turning to retailers’ own-label items instead, which are usually less expensive.”

Brands’ share of grocery spend has now dropped to 49 per cent, equivalent to a €29 million fall.

Dunnes Stores retained its position as Ireland’s largest grocer with a 22.3 per cent share. Tesco overtook SuperValu, with the two chains — which often swap places — now holding a 21.9 per cent and a 21.7 per cent share respectively. Lidl holds a 13.1 per cent share, ahead of Aldi at 12.2 per cent.