Irish supermarkets add €2bn in annual sales during pandemic

Grocery price inflation ticking higher in recent weeks, survey shows

Some economists believe food and grocery prices will inevitably tick higher because food manufacturers and trucking firms are big users of energy. Picture: iStock

Irish supermarkets added almost €2bn to bring their annual sales to almost €13bn during the pandemic even as their sales declined in recent weeks on the reopening of other food and dining outlets, according to a major market research company.

The latest Kantar survey also showed grocery price inflation at the annual rate of 0.6% – as measured across 30,000  grocery items bought by households in the Republic – was starting to tick higher in recent weeks, possibly because of the huge surge in energy costs. 

Price rises were notable for healthcare products, hot beverages, and frozen food, which climbed 8%, 5%, and by 4.6%, respectively, the researcher said.  

On inflation, some economists believe food and grocery prices will inevitably tick higher because food manufacturers and trucking firms are big users of energy. CSO figures last week showed consumer prices jumped to their highest level in 13 years in September, although food prices were so far subdued.

The Kantar figures showed grocery sales in the Republic, including the big five supermarkets that dominate the market and other independent and small grocery chains, was running at €12.98bn in the 52 weeks up to early October. 

That's up 16% from the €11.13bn in sales in the comparable period before the pandemic, in 2019.

For the latest 12 weeks, supermarket sales at €2.75bn had fallen 2.2% from a year ago when rival food outlets such as restaurants were still facing severe restrictions.  

The 'big five' – Musgrave-owned SuperValu, Dunnes, Tesco, Aldi, and Lidl – accounted for 91% of the €2.75bn grocery market in the last 12 weeks.  

At 22.3%, SuperValu secured the largest share, followed by Dunnes and Tesco at 21.9% and 21.4%, respectively. 

Aldi's share of 12.8% was almost level pegging with Lidl's 12.7%.