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Grocery inflation slows again to reach 2.5%

By June 25, 2024No Comments

New figures from Kantar show that grocery inflation stood at 2.5% in the 12 weeks to June 9 – the lowest level of grocery inflation since March 2022 and down from 2.6% in May.

Kantar said the slowing inflation rate offers shoppers something of a lifeline in terms of lower prices, but consumers remain on the hunt for value in the market with over 25% of value sales on promotion.

Today’s figures also reveal that take-home grocery sales increased by 3.4% in the four weeks to June 9.

It noted an increase boost in trips to stores, which rose by up 1.5%, along with an increase in average prices of 1.3%.

But volumes per trip fell by 1.2% compared to the same time last year and marked a reverse from last month’s modest rise of 0.2%.

Emer Healy, Business Development Director at Kantar, said that due to the bad weather this month people spent a combined €1.6m less on chilled salads, burgers, grills and sausages than this time last year.

“We did see some bank holiday weekend indulgence with sales of savoury snacks, confectionary and beer and lager up 16%,11.9% and 13.1% respectively,” she said.

She also noted an increase in soup sales and home baking, which added €1m and €500,000 to the tills.

Emer Healy also said today’s figures show that Irish consumers continue to value home-grown brands.

Kantar’s latest Brand Footprint report shows that four out of the top five most chosen brands in Ireland are Irish brands, with the average Irish household buying a portfolio of 77 fast moving consumer goods (FMCG) brands in a year – well above the global average of 66.

“This shows clearly how brands are still an important choice for Irish consumers”, she added.

Today’s figures also show that online sales were up 16.3% year-on-year with shoppers spending an additional €26.6m online.

Irish supermarkets’ performance update

Dunnes holds a 23.4% market share with growth of 6.2% year-on-year. Dunnes’ growth stems mainly from more frequent trips but also larger trips, which contributed a combined €20.8m to its overall performance, Kantar said.

Tesco holds 23.1% of the market, up 6.2% year-on-year. The supermarket group saw a strong increase in trips to stores up 7.2% year-on-year, which contributed an additional €51.1m to its overall performance.

SuperValu holds 20.5% of the market with 2.8% growth. SuperValu shoppers make the most trips in store when compared to all retailers, an average of 21.6 trips.

The retailer also saw the strongest growth in volume per trip amongst all retailers, up 8.3%. Kantar noted that SuperValu was the only retailer to attract new shoppers into its stores in the latest 12-week period, contributing a combined €66.3m additional to its overall performance.

Meanwhile, Lidl holds 13.9% share of the market with growth of 5.6% year-on-year. It saw the most frequent trips amongst all retailers, which contributed an additional €38.5m to the chain’s overall performance.

And Aldi holds 11.8% market share, with more frequent trips contributing an additional €12.2m to its overall performance in June.

Article Source – Grocery inflation slows again to reach 2.5% – Kantar – RTE

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