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Shoppers face increase of €453 to annual grocery bill

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Over half of Irish shoppers are actively seeking out deals in-store, according to latest Kantar research.

Over half of Irish shoppers are actively seeking out deals in-store, according to latest Kantar research.

Over half of Irish shoppers are actively seeking out deals in-store, according to latest Kantar research.

Grocery price inflation in Ireland reached 6.5pc, its highest level since February 2013, according to the latest figures from research group Kantar.

The inflation rate of 6.5pc was recorded over the 12 weeks to June 12 and marks a rise from the 5.5pc reported by Kantar for the previous 12-week period.

As a result of soaring inflation, Irish consumers could now face spending €453 more a year on their annual grocery bill. This is over €100 higher than the increase predicted by Kantar early last month as inflation rises at a rapid rate.

Increased spending at the checkout may prove difficult to avoid for many as shoppers note the daily essentials rising in price.

“We’ve seen some of the sharpest increases in essentials like butter, eggs, bread, and flour, which are a non-negotiable feature on the shopping list for many of us,” said Kantar senior retail analyst Emer Healy.

In response to the increased cost of living, shopping habits have changed for many Irish consumers. Shoppers make three fewer trips to the store on average per month than they were this time last year, according to Healy.

When in store, 53pc of shoppers actively seek out deals and ongoing discounts in order to make savings.

Online grocery also grew in demand, especially among families with younger children. Healy said this 9.3pc rise in online spend could point to a desire to travel less due to rising fuel costs.

“They’ve spent an additional €2.3 million on online grocery shopping over June, perhaps hoping to save on extra trips out in the car and avoid the petrol pumps,” she said.

Grocer’s own-brand products are increasing in popularity as these items are usually cheaper in price than the branded equivalent.

Healy reported that two thirds of Irish shoppers will now swap the branded product in their trolley for a cheaper own-brand item. Consumers also spent €8.2m more over this 12-week period on own-brand products from Dunnes and Tesco.

Both grocers now hold the top spot in the Irish market, with each holding a 22.1pc market share.

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SuperValu followed in third position, with 21.7%. Discount grocers Lidl and Aldi followed, with a market share of 13.2pc and 12.3pc respectively.

While take-home grocery sales declined by 4.9pc over the 12-week period, the June bank holiday weekend and warmer weather provided a boost for supermarkets. Shoppers spent €575,000 more on burgers and food for grilling in June compared to May, while ice cream sales soared by an extra €2.4m this month. Sun cream sales were also up 36pc in June.

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Savoury snacks are also recording strong sales at present, with sales in June this year over a million euro higher than the same month last year. Soft drink purchases are up €930,000 compared to June 2021.

Last week, Cork-born Tesco Group chief executive Ken Murphy told the Consumer Goods Forum Global Summit in Dublin that Tesco has “historical evidence” that “comfort eating” of unhealthy snacks rise when a country experiences an economic downturn.


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