Tesco comes out on top while grocery inflation hits…

Tesco comes out on top while grocery inflation hits highest level since 2008, according to a new study

Tesco has come out on top as Ireland's most popular supermarket, a study has confirmed. It also revealed that grocery inflation is at a 14-year high.

The study, carried out by Kantar, showed that despite shoppers opting for cheaper products in an effort to reduce cost, the average price paid for each item has increased by 6.3%.

Senior Retail analyst with Kantar, Emer Healy said: “We are seeing rising costs on many fronts, and shoppers’ weekly grocery bill is no exception to the rule. Food and drink prices are continuing to climb, and the impact of this on shopping budgets is now unavoidable for many consumers.”

In response to the cost of living crisis, Healy explained that shoppers are also reducing the frequency at which they go shopping while opting for cheaper products. “Consumers are now making two less trips to the supermarket on average compared to this time last year,” she said.

As a result of changing habits, branded products are seeing fewer sales with shoppers spending €72 million less on branded goods. In contrast, shoppers spent €19 million more on retailers’ own-label products which grew 1.5% over the last 12 weeks.

Retailers’ own-label products now account for 46.7% of the Irish grocery market in terms of consumer spending, compared to 44% in 2020.

Online grocery shopping is becoming increasingly popular in Ireland with online sales in July increasing by 15%. Online sales of own-label goods saw a 21% boost during July, with shoppers spending an additional €10.9m.

Tesco is currently the most popular retailer in Ireland holding a 22% share of total grocery market in Ireland. Dunnes Stores is close behind with a 21.9% share while SuperValu is the third most popular retailer with a 21.5% share. Lidl holds 13.5% while Aldi holds 12.6%. All retailers saw an increase in new shoppers while SuperValu continues to see shoppers returning to its stores more often than any other retailer.

With the recent hot weather, over the past four weeks, shoppers spent an additional €540k on take-home savouries, €1.5m on soft drinks, €170k on chilled burgers and grills and €656k on fresh sausages. However, the cost of hosting a barbeque has increased by 7.4% over the last year, according to Kantar.

READ NEXT :

Get breaking news to your inbox by signing up to our newsletter

Read news from 100’s of titles, curated specifically for you.

Already a member? Sign in here