Storm Éowyn drives additional spending in supermarkets

The post-festive period saw consumers spend more on items that were on promotion with an extra €72m spent during January

Overall consumer spending during January was up 6.5% compared to the same period last year. 

Irish consumers stocking up on necessities before the impact of Storm Éowyn led a notable increase in spending at the three largest supermarket chains during the month of January, new data from market research firm Kantar shows.

Storm Éowyn hit Ireland on January 24 causing significant damage and leaving thousands of people with power. 

In the weeks leading up to the storm hitting the country, spending in Tesco, SuperValu, and Dunnes Stores increased by 8.9%, 8.5%, and 8.1% respectively. Compared to the same period last year, spending across the entire market was 6.5% higher.

Despite falling slightly compared to December, grocery price inflation remains high at 3.4% compared to the overall rate of inflation which stood at 1% in December. 

The general rate of inflation has been under 2% since June.

Kantar’s inflation figure is based on 30,000 products compared each year.

Market share

According to Kantar, in the 12 weeks to January 26, Dunnes Stores held a 25% share of consumer grocery spending with shoppers contributing an extra €39.2m to the supermarket’s overall performance during this period.

Tesco held 24.1% share of the market with shoppers spending an extra €21m. This follows a strong Christmas trading for the retailer which saw its Irish operations record a 4.1% increase in sales outperforming its UK operations.

SuperValu held 20.3% share of the market with consumers making the most shopping trips to the supermarket averaging 23.8 trips over the 12 week period. This increase in the number of shopping trips contributed an additional €40m to its performance.

Lidl held a market share of 12.4% — adding €8.7m in sales during the 12 week period — while Aldi held 10.7% adding €13.3m to the company's performance. 

The post-festive period saw Irish consumers spend more on items that were on promotion with an extra €72m spent during the month of January.

Business development director at Kantar Emer Healy said this is “the highest level of sales on promotion we’ve seen since February 2021”.

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Sales of own label products also jumped 6.9% compared to last year with an additional €103.9m being spent on these ranges. Overall own label holds 44% value market share.

Although brand sales have also seen growth during the first month of the year, it was behind the total market at 5.3%.

There was also a notable increase in spending on healthier food options as well as non-alcoholic drinks during January.

An additional €8.9m was spent on fresh fruit and vegetables combined during the month while sales of low and no-alcohol soared by over 47% with shoppers spending an additional €620,000 compared to last year.

However, not every home was partaking in Dry January as an extra €7m was spent on beer and cider.

Online sales rose by 14.5% year-on-year, with shoppers spending an additional €27.4m,. Over the latest 12-week period, the number of online shopping trips increased by 11.7%.