Grocery Spending Soars to €13.5bn Amid Unyielding Inflation Crunch

“Supermarket Spending Soars to €13.5bn as Irish Shoppers Feel the Pinch of Rising Prices, says Kantar Report”
Grocery Spending Soars to €13.5bn Amid Unyielding Inflation Crunch

Supermarket spending in Ireland has reached €13.5 billion in the 52 weeks leading up to early July, marking an increase of €1 billion compared to the same period last year. This surge in spending is a direct result of higher prices at the tills, according to market research firm Kantar. Despite this, the pace of grocery inflation in Ireland has slightly cooled, although it still remains at a high annual rate of 14.7%. The €13.5 billion spent in the 52-week period is an increase from the €12.5 billion spent during the same period the previous year, as well as the €12.8 billion in sales for the 2022 calendar year.

Kantar’s latest inflation reading of 14.7% represents a decrease from 15.8% in June, marking the lowest rate this year. These figures are based on Kantar’s survey of the spending habits of 5,000 households in the Republic of Ireland, as well as the prices of 30,000 grocery items. The report also reveals that the five dominant supermarket chains in Ireland, namely Dunnes, Tesco, SuperValu, Lidl, and Aldi, accounted for over 92% of grocery sales in the latest 12-week period. The remaining 7.6% of the market was divided among symbol chains and independent outlets.

In the most recent period, Dunnes managed to maintain its position as the largest supermarket by sales, narrowly surpassing Tesco. Kantar’s business development director, Emer Healy, commented on the drop in inflation, stating, “This is the second month in a row there has been a drop in inflation, which is welcome news for shoppers. Although the rate is still high, with just a 1% drop since January, we expect to see further gradual decline over the coming months.”

Overall, the increase in supermarket spending in Ireland reflects the impact of rising prices. While grocery inflation has slightly cooled, it remains at a high annual rate. The dominance of the five major supermarket chains highlights the competitive nature of the market, with symbol chains and independent outlets fighting for a smaller share. Shoppers can look forward to a gradual decline in inflation in the months to come, providing some relief from the elevated prices at the tills.