The rate of inflation in Irish supermarkets has continued to slow with fresh data from retail analysts Kantar Worldpanel suggesting prices are increasing by 7.1 per cent.
It represents a dramatic decline from a rate of 15.5 per cent that was recorded this time last year and marks the eighth month in a row that inflation has fallen.
Kantar also pointed to a record-breaking €1.4 billion spent by consumers on groceries last month with the average household spend put at an all-time high of €767 up €42 on 2022 and an increase of €170 compared with 2019.
“As we expected, this Christmas was a mammoth month,” said Kantar Worldpanel’s Emer Healy.
She noted that Friday, December 22nd was the most popular shopping day over Christmas week with Irish shoppers spending €92 million in stores making just more than two million trips. Saturday 23rd was the second busiest trading day, with €87 million running through the tills.
“This is the eighth month in a row that there has been a drop in inflation, which will be welcome news for consumers,” Ms Healy said. “It is the lowest inflation level we have seen since August 2022, and we expect to see this gradual decline continue throughout 2024.”
However although grocery inflation levels are falling, “they are still exceptionally high and Irish consumers face serious pressures on their household budgets”, she said.
She suggested that “retailers worked hard during the festive season to attract shoppers by offering the best value, and promotions were central to their strategy. Nearly 29 per cent of all spend in the 12 weeks to December 24th was made on items with some promotional offer, the highest level since January 2023 and €117 million more than the previous year.”
Alongside promotions, retailers also emphasised own-label lines, which have been attracting Irish shoppers throughout the cost-of-living crisis.
Private-label goods remained popular, growing ahead of the total market at 10.4 per cent year on year, and holding a 44.6 per cent value share, up 1.2 percentage points versus last year.
In total, shoppers spent an additional €151 million year on year on private-label lines. Premium private-label ranges also continued to perform strongly, with Irish shoppers looking to indulge over the festive season. They spent an additional €177 million on these lines year on year, a growth of 11.8 per cent.
Housing in 2024: ‘several more years before we see the quantity of houses we need’
Consumers also reached for more branded goods to treat themselves over the Christmas period, spending an additional €105 million compared with Christmas 2022, an increase of 6.1 per cent.
Irish consumers’ desire for the traditional Christmas dinner remained strong with volumes of potatoes, carrots and broccoli up between 1.9 per cent and 7.5 per cent.
“We’re creatures of habit when it comes to our Christmas feast and our data shows that the classic Christmas plate remains much the same,” Ms Healy said.
“However, Brussels sprouts and mince pies bucked the trend; they were less popular with volumes down 2.4 per cent and 9.3 per cent respectively. Irish shoppers did not lose their sweet tooth altogether, with sales of seasonal biscuits, chilled desserts and chocolate confectionery up.”
Dunnes, SuperValu and Tesco accounted for a combined market share of 69 per cent in the 12 weeks to December 24th.
Dunnes hit a new record share of 24.5 per cent, with growth of 11.5 per cent year on year. This stemmed from a one-percentage point increase in new shoppers, the highest penetration boost among all the retailers.
Tesco holds 23.7 per cent of the total market, which is a new record for the retailer, while SuperValu has 20.8 per cent.
Lidl has 12.5 per cent while Aldi’s share is 10.9 per cent.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
