Grocery price inflation in Ireland climbed to its highest level since December 2023, reaching 6.5% in October, according to new data from Worldpanel by Numerator. The figure marks an increase from 6.3% recorded in the previous 12-week period, highlighting continued pressure on household budgets.
The rise comes amid broader inflationary concerns. Figures from the Central Statistics Office earlier this month showed overall inflation rose to 2.7% in September — the highest level in 18 months.
Despite rising prices, Irish shoppers increased their grocery spending, with take-home sales up 6.1% in the four weeks to October 5. Consumers spent an additional €67.6 million compared to last year, with average volumes per shopping trip up 1.8%.
Shoppers Seek Value as Costs Rise
Emer Healy, Business Development Director at Worldpanel by Numerator, said the coming weeks — between Halloween and Christmas — will be critical for retailers as households juggle festive spending with tighter budgets.
“With the latest budget for 2026 announced amid economic uncertainty, there will be more pressure on shoppers, which may affect discretionary spending,” Healy said. “The end of one-off payments such as the energy credit and double child benefit, combined with rising fuel and household costs, will put added strain on many families.”
In response to higher prices, more consumers are turning to special offers and promotions to manage costs. Promotional spending accounted for 21.9% of total grocery value in October — the highest since June — and rose by 10.2% over the past 12 weeks, outpacing overall market growth of 6.2%.
Healy noted that promotional activity typically intensifies ahead of the festive season and is likely to continue rising into December. “Shoppers are increasingly relying on promotions to offset rising costs,” she said, adding that indulgent categories such as chocolate, soft drinks, and biscuits have seen promotional sales surge by 62%, 60%, and 30% respectively since 2022. Overall, Irish households are spending €145 million more on promotions than two years ago.
Retailers’ Market Share
Among the major supermarket chains, Dunnes Stores retained the top spot with a 24.4% market share, up slightly from the previous period, and a 6.2% increase in annual sales. Tesco followed closely with 23.7% of the market and year-on-year growth of 7.1%, driven by increased store visits and new shoppers.
SuperValu held a 19.2% share with 4.6% growth, while Lidl continued to post the fastest expansion among retailers at 9.2%, lifting its share to 14.1%. Aldi captured 11.4% of the market, up 4.1%, with new customers contributing an additional €8.8 million in sales.
As Irish consumers navigate persistent price pressures, analysts expect competition among grocers to intensify in the months leading up to Christmas, with promotions playing a key role in attracting price-conscious shoppers.
