Grocery price inflation slows to 15.8% from 16.5%

June 28, 2023

New figures from Kantar show that grocery inflation rose by 15.8% in the 12 weeks to June 11, down on last month’s level of 16.5% and the lowest level of inflation seen so far this year.

Today’s figures show that take-home grocery sales increased by 10.8% in the four weeks to June 11.

Kantar noted that shoppers returned to stores more often in June with the number of trips rising by 9.2% compared to last year. Shoppers made an average of two additional trips, down slightly compared to May.

It also said that the percentage of packs sold on promotion increased to 25.8% from 24.7% last year, which shows that shoppers are carefully choosing promotional items to help them to make ends meet.

Over the 12 weeks to June 11, the growth in sales of own label (15%) was almost double that of brands (7.8%) as shoppers look for ways to save money.

Value own label saw the strongest growth, up 28.9% year-on-year with shoppers spending €15.7m more on these ranges.

Kantar said that with the cost-of-living crisis bringing change to traditional shopping and eating behaviours, people are thinking more about what they eat and how they cook at home.

As shoppers look for easier meals with less waste, sales of total chilled ready meals jumped by 20% with shoppers spending an additional €2.9m year-on-year.

Meanwhile, online sales remained strong over the 12-week period, up 2.2% with shoppers spending an additional €3.5m on the platform year-on-year.

Today’s figures also show that Dunnes continues to hold the highest share amongst all retailers at 22.9% with growth of 15% year-on-year.

Kantar said this growth stems from shoppers returning to store more often, up 2.1% on an annual basis as new shopper arrivals also rose.

Tesco holds 22.6% of the market with 13.5% growth year-on-year. Tesco has the strongest frequency growth amongst all retailers, up 17.7% year-on-year, contributing an additional €103.6m to its overall performance.

Meanwhile, SuperValu holds 20.7% of the market and growth of 6%. SuperValu shoppers make the most trips in store compared to all retailers, an average of 24 trips, up 15.3% year-on-year.

Lidl hit a record new share of 13.7% with growth of 15.5% year on year. More frequent trips and new shoppers contributed an additional €45.2m to the retailer’s overall performance.

And Aldi holds 12.3% with growth of 10.3% year-on-year as a boost in new shoppers and more frequent trips contributed an additional €49m to overall performance.

Article Source: Grocery price inflation slows to 15.8% from 16.5% – RTE

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