Shopping habits are shifting with inflation, supermarket data shows

Data released this week by supermarket chain Aldi demonstrates how a significant number of Irish consumer are changing their shopping habits to cope with inflation and the cost-of-living crisis.

Market data from Kantar suggests that more than one in four households are “struggling” to make ends meet due to soaring grocery costs. Inflation in the sector is running at close to 12 per cent. Aldi, a discount German chain with more than 150 stores in Ireland, says inflation in its network is 8 per cent.

The company’s research shows people are buying fewer items per trip, partially to keep costs down but also to reduce waste. Across the market, packs per trip are down 7 per cent but, in Aldi, they are down 10 per cent. The company says that is because customers tend to do bigger shops with it.

Discount items

The inflation crisis means there are fewer items for sale at a discount. This year about 20 per cent of items were bought on discount, whereas it was 26 per cent in 2020.

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As the cost-of-living crisis bites, it appears that many households are pulling back on eating out in hospitality outlets. Aldi’s data suggests many are instead treating themselves at home. Sales of premium coffee and chilled desserts are up, it says. Dinner parties instead of nights out?

Kantar’s market data shows that sales of frozen food are up 11 per cent this year, compared to before the pandemic (the last “normal” period in the grocery industry). Meanwhile, sales of healthcare goods are up 15 per cent, as customers seem to be maintaining the focus on health that emerged during the pandemic.

Aldi’s data shows that sales of its frozen stonebaked pizzas are up 75 per cent on the pre-pandemic period, which suggests that many customers might be substituting home treats in instead of weekend takeaways. Meanwhile, sales of its margherita triple packs are up by a third, as householders seem to be partying more at home.

Aldi, which derives more than 80 per cent of its revenues from private label sales, claims customers can save close to €1,200 annually by swapping out brands. The cost-of-living crisis is creating new buying habits among Irish shoppers. It will be interesting to see which ones stick.