Grocery price inflation has increased for the second month in a row, according to the latest figures from Kantar. Prices in the 12 weeks leading up to August 4th rose by 2.8%, up from a 2.6% increase in the previous 12-week period ending July 7th. This marks a reversal after 15 months of easing inflation in grocery prices.
The data reveals a continued shift in shopping habits, with consumers opting for more frequent but smaller grocery trips. The number of shopping visits increased by 4.7% over the 12-week period, while the number of items purchased per trip fell by 2.4%. Shoppers are increasingly focusing on saving money, as evidenced by a nearly 11% rise in spending on promotions compared to the previous year. Promotional items now account for nearly 25% of the total value of grocery sales during this period.
In addition to seeking deals, consumers are also turning to own-label products, which saw a 4% increase in sales, equating to an additional €59.2 million compared to the same period last year.
Among grocery retailers, Tesco maintained the largest share of the Irish market, with a 23.3% share, slightly ahead of Dunnes, which held 23.2%. Tesco’s growth outpaced that of Dunnes during the period. Supervalu, which held a 20.2% market share, experienced a decline in its share due to sales growth falling below the market average.
Aldi saw a reduction in its market share, dropping from 12.6% to 12%, while Lidl managed to hold steady with a 13.8% share.
The rise in grocery price inflation and shifting consumer behaviors highlight the ongoing challenges within the retail sector as both shoppers and retailers navigate an evolving economic landscape.
