Grocery inflation is now at a record 12.4 percent, putting household budgets to the test as consumers also grapple with rising mortgage and energy costs.
The latest figures from research group Kantar this morning confirm the runaway food prices.
And shoppers now have to pay nearly €900 extra a year for their groceries. This increases the average annual grocery bill from €7,000 to €7,867.
Kantar said the average price of basic necessities, including butter, milk and bread, is now 28 percent higher than this time last year.
Russia’s invasion of Ukraine, stricken global suppliers, and skyrocketing energy costs have all helped pocket buyers. The main farming costs of necessities like fertilizer and fodder had all skyrocketed, pushing up the prices of production.
Emer Healy, senior retail analyst at Kantar, said the percentage of consumers who say they are struggling to make ends meet has risen to 32 percent from 23 percent in March.
“The average annual grocery bill increases from €6,999 to €7,867 if consumers don’t make changes to how they shop and how they shop to reduce costs,” she says. “That means the average annual purchase will increase by €868 per year. At shopping cart level, that’s €3.36 more per trip.”
She said the pressure shoppers are feeling has also led them to increasingly turn to retailers’ own-brand offerings.
“Sales of the retailer’s own-brand lines were up 7.2 percent among the last 12 shoppers, who spent an additional €88.3 million year-on-year,” she noted. “Value own-brand ranges saw the strongest growth, up 23.5 percent year-on-year, with shoppers spending an additional €11.3 million.”
But branded grocery sales for some items have also increased.
“As household budgets tighten, shoppers are looking for small luxuries for their food and drink to enjoy at home,” Ms. Healy said. “As a result, over the past 12 years, sales of branded soft drink to-go, chocolate chip cookie bars and chips grew 5.4 percent, 10.9 percent and 6.5 percent, respectively.”
She said that online sales of groceries – which have boomed since the pandemic began – fell from Oct. 12-3. This is the first decline since March this year. Shoppers made 5.5 percent fewer online visits for their groceries, but physical store visits increased by 5.5 percent.
Over the past four years, Kantar said the number of online visits fell by 3 percent and volume by 6.4 percent, with 1.8 percent of shoppers abandoning online grocery platforms overall.
The latest figures show that Dunnes Stores, the country’s largest food retailer, has a 22.7 percent share of the multi-billion euro market from October 12-3. Compared to the corresponding period a year ago, it recorded growth of 8.2 percent.
Tesco has a market share of 21.8 per cent and has grown by 5.2 per cent year-on-year.
SuperValu, controlled by Cork’s Musgrave group, had a 21.2 percent stake. Lidl has a 13.1 percent share of the food market, Adli has 12.7 percent.
Kantar measures market share based on the value of goods sold, not volume.
https://www.independent.ie/business/shoppers-face-paying-900-more-per-year-for-groceries-as-inflation-soars-42072426.html Shoppers are paying €900 more a year for groceries as inflation soars