Inflation across Irish supermarkets has fallen back slightly but grocery prices are still over 6 per cent higher than they were this time last year, according to new data from retail analysts, Worldpanel by Numerator.
The research puts the rate of inflation at marginally more than 6 per cent, down 0.5 per cent on the level recorded a month ago.
The 6.06 per cent rate recorded is considerably lower than the runaway inflation of close to 17 per cent that was posted at the height of the cost-of-living crisis in the summer of 2023, but it comes on top of two years of hikes and the cumulative impact has left many households worse off by in excess of €3,000 over the course of a year.
According to the Worldpanel business development director Emer Healy, retailers are “acutely aware of the financial pressures that many households are under right now, especially with this year’s budget, and are keen to show how they’re delivering value for money with a big focus on promotions”.
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She noted that 22 per cent of all grocery sales are on promotion. Promotional activity typically intensifies in the lead-up to Christmas, so this is likely to persist well into December.
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“Shoppers are already getting into the spirit, spending an additional €8 million on boxed chocolates compared with last month,” Ms Healy said.
Own label saw strong growth over the past 12 weeks, up 6.3 per cent, with shoppers spending an additional €99 million on these ranges versus last year.
Premium own label ranges continue to see strong growth, up 15.3 per cent, with shoppers spending an additional €18.5 million on these items compared to last year.
With brands, growth slowed to 5.2 per cent in the past 12 weeks, but Irish shoppers still spent an additional €85.4 million on branded products.
Brands currently hold 48.2 per cent value share of the total market, the highest share since February, showing how shoppers are more likely to treat themselves in the lead-up to Christmas.
Own label holds 46.2 per cent value share.
“I think we all like to indulge a little at this time of year and, despite the ongoing cost-of-living crisis, many have managed to find a balance by choosing retailers’ premium own-label ranges as an affordable way to treat themselves,” Ms Healy said.
Category increases included frozen fruit, low alcoholic drinks, hot beverages, confectionery sweets, chocolate, sweet spreads and savoury snacks, all of which grew ahead of the total market in the latest 12-week period.
Dunnes Stores holds 24.6 per cent market share, up on the previous 12-week period, with sales growth of 6.1 per cent year-on-year. Tesco commanded 23.8 per cent, with value growth of 7.7 per cent year-on-year.
SuperValu held 19.4 per cent market sharewith Aldi on11.2 per cent.
