Grocery price inflation has fallen by almost one percentage point over recent weeks, according to fresh research from retail analysts Worldpanel by Numerator.
The figures also point to a bounce in summer sales, with a surge in shoppers seeking out soft drinks and ice creams over a period that predates the recent heatwave.
Worldpanel’s monthly data, compiled in the middle of this month, suggests grocery prices climbed by 4.7 per cent when compared with the same period last year.
A rate of inflation of 5.5 per cent was recorded last month and the figure was above 6 per cent as recently as April.
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While the dip in the rate at which prices are climbing will be greeted with relief by many consumers, they are still rising and there are fears that the impact of the Gulf conflict has yet to fully filter through the food and grocery supply chain. That means the pace at which prices are climbing could pick up as the summer continues.
The Worldpanel figures suggest take-home grocery sales increased by 4.8 per cent while online sales continue to post strong growth, increasing in value by 16.8 per cent year on year.
Shoppers made the most of warmer days, with several summer categories posting strong sales gains. Soft drink sales grew by €2.9 million compared with May, water and squash by €1.27 million and ice cream and sorbets added €4.2 million in value sales compared with last month.
Suncare demand held firm, with shoppers spending an extra €2.2 million on the category. More at-home eating also lifted fruit sales by €549,000 and bakery sales by €302,000.
“June delivered another bank holiday and the start of the World Cup [and] barbecues fired up across the country, with shoppers spending just over €502,000 more on chilled burgers and grills, and a further €775,000 on prepared salads,” said Worldpanel’s head of retail, Eimear Faughnan.
“Shoppers also widened their drinks repertoire, spending an additional €2 million on flavoured alcoholic drinks and mixers, while beer and cider saw the value of sales fall by €3.3 million compared to last month,” she added
Dunnes Stores held its leading position among grocers at 23.8 per cent market share, with sales growth of 4.9 per cent with Tesco marginally behind, posting a 23.6 per cent share and growing ahead of the market at 5.5 per cent.
SuperValu’s value share this period is 19.5 per cent, while Lidl grew its market share again to 15 per cent, recording value growth of just over 11 per cent. Aldi maintains its value share of 11 per cent over the latest 12-week period.
