Tuesday 22 October 2019

Grocery prices rise with further increases likely

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Gavin McLoughlin

Gavin McLoughlin

Grocery prices rose 1.5pc in the 12 weeks to February 24, and further increases are likely on foot of Brexit, according to market researchers Kantar Worldpanel.

Extra customs paperwork plus any tariffs that emerge will make British goods more expensive for Irish importers, Kantar’s consumer insight director Douglas Faughnan said.

It was the fourth period in the row where prices went up.

“While branded sales have remained resilient despite higher prices, growing at 3pc and accounting for 47.3pc of overall sales, continued inflation may drive Irish consumers to trade down to cheaper own label ranges which are already growing at 4pc in the latest 12 weeks,” Mr Faughnan said.

The figures showed Dunnes retained its position as biggest supermarket by market share, on 23pc. Tesco was second on 21.6pc while SuperValu was third on 21.3pc.

They will face a fresh challenge from the German discounters if inflationary pressure emerges.

“Shoppers may opt to save money by moving more of their spend towards the retailers they perceive as offering better value.  Each of the five major supermarkets played host to at least two-thirds of the population in the past 12 weeks, demonstrating that Irish shoppers are already prepared to shop around for the best deals.  Retaining the loyalty of their existing shoppers will be a key priority for retailers in the face of increased price pressure,” Mr Faughnan said.

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