Grocery price inflation slows again during August to 3.87%

Rate of inflation down from the 4.16% recorded last month and down 2.01 percentage points compared to the same period last year

Dunnes Stores retained the largest share of consumer spending in grocery stores in August at 24.1%, with Tesco just behind at 23.8%. 

Irish grocery price inflation slowed again this month, falling to 3.87% and continuing a trend of monthly declines since April, new data from Worldpanel by Numerator shows.

The rate of inflation is down from the 4.16% recorded last month and down 2.01 percentage points compared to the same period last year. Grocery price inflation over the last few months peaked in April at 6.7% and has been on the decline since.

Overall headline inflation for July stood at 3.4%.

According to the data, Irish grocery sales were up 5.8% over the four weeks to August 9, compared to the same period last year.

Worldpanel by Numerator said the warm weather over the last few weeks was reflected in customers' shopping habits, with people making more trips.

Shoppers made 44 million trips to stores over the latest four-week period, an average of 23 trips per household, up 4.6% versus last year. Volumes were also up 4.9%, while shoppers spent on average €635 per person over the four weeks.

Irish shoppers spent nearly €197m on alcoholic beverages, up 5.6% versus last year, as well as an additional €36.1m on goods typically associated with warmer weather, including soft drinks, antipasti, ice cream and suncare.

Customers spent an additional €829m on promotional lines over the 12 weeks to August 9, giving promotions value share of 22.4%. Sales on promotion jumped 13.1% compared to the same period last year.

Business development director at Worldpanel by Numerator Emer Healy said shoppers had kept a keen eye on value throughout the summer, with promotional sales now accounting for nearly a quarter of spend.

“It's clear that even amid the good weather and busier trollies, Irish shoppers haven't lost sight of getting the best deal for their money.” 

Sales of branded goods grew by 12.2% in value, adding €200m during this period, with their market share hitting 49.8%. Own-label value sales grew by €71m.

Dunnes Stores retained the largest share of consumer spending over the 12 weeks to August 9, accounting for 24.1%. More frequent trips to their stores and new shopper recruits boosted the retailer’s performance, adding a combined €53.9m.

Tesco remained in second place, with 23.8% of the market. Alongside more frequent trips, new shoppers to Tesco stores contributed an additional combined €34.1m to overall performance.

SuperValu held a market share of 19.4%. It leads all major retailers on trip frequency, averaging 24.4 visits per person over the last 12 weeks.

Lidl’s share of consumer spending has grown by 10.3% over the last year and now stands at 14.8%, meaning the discount retailer has seen the highest growth over the latest 12 weeks. Its German rival Aldi holds a market share of 10.9%.

In terms of online shopping, sales increased by 27.6% over the 12 weeks, with people spending an additional €54.1m compared to the same period last year.