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Less home baking and more takeout drive down grocery sales

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CONSUMERS are baking less at home, buying less groceries online, and buying fewer groceries in the wake of the Covid-19 pandemic.

New figures released this morning by research group Kantar show that even though take-home grocery sales fell 4.5 percentage points in the 12 weeks to 20 February compared to the corresponding period of one the year before, they were still 11.1 percent higher than they were two years ago. pandemic emerged.

And commodity inflation continues to mount, with shoppers seeing prices for food and household products rise as they also grapple with soaring fuel prices as a result of Russia’s invasion of Ukraine. .

Commodity inflation hit 2.4 percent in the most recent 12-week period, marking the seventh consecutive month that shoppers’ costs have increased, according to Kantar.

And supermarkets are also hunting for price promotions. Kantar said the number of products on sale fell 10.9 percent year-on-year, as retailers sought to manage supply costs.

“Price is rising across the board and that is really being felt in grocery stores,” said Kantar senior retail analyst Emer Healy.

“We are now starting to see this reflected in shopper behaviour, with people increasingly choosing private label lines over branded products in an attempt to reduce shopping costs. their weekly,” she said.

The return of many people to offices and other workplaces has led to a corresponding increase in the number of convenience products purchased at supermarkets.

New figures show shoppers have spent an extra 4.3 million euros on convenience items such as pizza and ready-to-eat items recently.

“With convenience options on the rise, baking at home is clearly lower on the shopper’s agenda,” said Ms Healy. “Sales of flour, eggs and chocolate spreads are down 27.6pc, 20.6pc and 35pc respectively over the past four weeks.”

While the Covid crisis led to an increase in online shopping as people avoided grocery stores, the general reopening has seen its overall grocery shopping rate drop.

Kantar said the online grocery share of the multibillion-euro market here fell to 5.7 per cent in the latest period from 6.2 per cent last February.

Ms Healy said: “Shoppers are returning to stores and delivering less, and we’ve seen online grocery sales drop 15 per cent, to 9.4 million euros in the past four weeks”.

She said that grocery retailers have invested heavily in their online sales infrastructure over the past few years, especially as online sales have grown significantly since 2018.

“However, the online grocery growth we have seen during the pandemic is now starting to stabilize and hit a natural ceiling as we ease back into life after the lockdown,” said Ms Healy. “.

Dunnes Stores had a 23pc share of the grocery market in the 12 weeks to February 20th, while SuperValu had 22pc. Tesco has 21.9pc.

https://www.independent.ie/business/less-home-baking-and-more-food-on-the-go-sees-grocery-sales-decline-41419140.html Less home baking and more takeout drive down grocery sales

Fry Electronics Team

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