Irish shoppers are now shopping less in stores as grocery inflation soars to a 14-year high of 9.5 per cent and it becomes increasingly difficult to snag a discount.
Consumer spending on groceries fell 0.7 percent in the 12 weeks ended Aug. 7, according to the latest figures from research group Kantar.
It is also more difficult for consumers to find bargains. The proportion of groceries sold on sale was 24.6 percent over the past 12 weeks. This represents a large decrease from around the time of the last economic downturn, when in 2010 34.2 percent of groceries were sold through promotions.
In the last four weeks, the value of food sales has increased by 1.6 per cent, with Irish consumers now spending an additional 14.5 million euros. Kantar reports that consumers are now paying 8.1 percent more per item this month than in the same period last year.
Shoppers also increased their visits to the supermarket by 2.3 percent last month, making an average of 19 visits.
Despite the increasing number of shopping trips, consumers are buying less. Volume sales fell 9.2 percent last month.
Senior retail analyst Emer Healy said the impact of inflation on shopping budgets is “inevitable” for many, with items commonly on shopping lists being hit hardest.
“Essentials like butter, milk, flour, eggs and bread are seeing some of the biggest price increases. This increase means that if consumers buy the same products as last year, the average annual purchase could increase by a staggering €662,” she said.
Demand for private label offerings continued this month, with sales up 3.5 percent. That increase is now worth €44.5 million to Irish retailers, with private label now accounting for 46.7 per cent of the Irish grocery market’s total spend.
This is up 2.7 percent from 2020.
Online shopping remains a popular choice for consumers as consumers take advantage of the opportunity to track their spending and reduce gas costs. Over 16 per cent of the Irish population now buy their groceries online
Tesco and Dunne hold the top position in the Irish grocery market with a market share of 21.9 per cent each. SuperValu is third at 21.5 percent and is the most visited supermarket chain.
The discounters Lidl and Aldi followed with a market share of 13.4 and 12.7 percent respectively.
https://www.independent.ie/business/irish/grocery-bills-to-rise-662-a-year-as-supermarkets-reduce-promotions-41928950.html Grocery bills rise by €662 a year as supermarkets scale back promotions