Grocery spending on summer staples drops in June

'Less than typical sunny weather' earlier this month meant shoppers were reaching for soups rather than burgers and sausages for summer barbecues, according to research

The annual rate of grocery price inflation dropped marginally to 2.5% at the start of this month. 

Irish consumers spent less on summer staples such as burgers, sausages, and grills during the start of this month, as more people opted for soups and home baking, new sales data suggests.

According to data from market research firm Kantar, take-home grocery sales increased by 3.4% in the four weeks to June 9, with indulgences such as savoury snacks, confectionery, as well as beer and lager up 16%, 11.9% and 13.1% respectively.

Business development director at Kantar Emer Healy suggested the “less than typical sunny weather this June” meant shoppers were not cracking out the barbecues as much. In total, consumers spent a combined €1.6m less on chilled salads, burgers, grills and sausages during the four weeks to June 9.

The data also shows there was an increase in soup sales and home baking, which added €1m and €500,000 to the tills, respectively.

The data also shows annual grocery price inflation, in the 12 weeks to June 9, was running at 2.5% — down slightly from the 2.6% recorded last month. This the lowest rate of inflation since March 2022.

The headline rate of inflation is currently running at 2.6%.

However, grocery price inflation is still high despite food producer prices actually going down over the last year.

Last week, the Central Statistics Office published its latest wholesale price index which showed producer prices in May fell by 6.5% compared to the same month last year.

Fish products were the only category to see a major increase — up 6.9%. There were minimal price differences across many of the categories aside from dairy products, which dropped 15.4%, and grain milling, starches, and animal feeds which dropped 6%.

Beverage prices, on the other hand, did increase year-on-year by 7.2%.

Consumers are still out searching for deals where they can get them, with 25% of sales purchased on promotion.

On top of this, sales of own-label products grew nearly 5% compared to last year and hold 48% of the market. Shoppers spent an additional €73.5m on these items year-on-year.

However, sales of brands were also up by 3.9%, with shoppers spending an additional €57.9m on such items.

Dunnes Stores retains the highest level of market share of all five main supermarkets. In the 12 weeks to June 9, its market share stood at 23.4% — an increase from 22.9% last year.

According to Kantar, Dunnes Stores’ growth stems mainly from more frequent trips but also larger trips, which contributed a combined €20.8m to their overall performance.

Tesco holds 23.1% of the market — up from 22.6% last year — while SuperValu holds 20.5% of the market, down from 20.7% last year.

Lidl holds 13.9% share of the market, which is up just 0.2% from last year, while Aldi holds 11.8%, down from 12.3%.

Online sales were up 16.3% year-on-year, with shoppers spending an additional €26.6m.

Kantar’s research is based on data from more than 30,000 identical products compared year-on-year.