Grocery price inflation drops another 8.6% – Kantar

Kantar reports a decline in grocery price inflation to 8.6%, marking the seventh consecutive month of decrease and reaching the lowest level since August 2022. The latest predictions from Kantar suggest that grocery sales are set to surpass €1.4 billion in December.

New figures released today by Kantar reveal a 7.2% increase in take-home grocery sales in the four weeks leading up to November 26. Although shoppers visited stores more frequently in November, with an average of 21.3 trips over the month, representing a 4.4% increase from last year, volumes per trip continued to decline, dropping by 4.4%.

The data also indicates a decrease in grocery price inflation to 8.6% for the 12 weeks leading to November 26, marking the seventh consecutive month of decline and the lowest level since August 2022.

Emer Healy, Business Development Director at Kantar, anticipates a continued gradual decline in inflation rates in the coming months. Kantar reports a 1.9% increase in the percentage of packs sold on promotion, reaching 26.7%, a 15.3% year-on-year increase. Although own label goods remain popular, experiencing a 10.4% sales increase in the latest 12 weeks, there is a slight 0.4 percentage point decrease compared to the previous month. H3 H3 H3 H3 H3 H3

Kantar highlights Irish consumers’ festive spirit, noting a 10.6% increase in premium own label products, with shoppers spending an additional €13.4 million compared to the previous year. Own label value share stands at 46.6%, while brands hold 48.5% of share, up by 1.1% compared to last month, as shoppers turn to trusted brands leading up to Christmas.

Emer Healy remarks that the Irish grocery landscape remains highly competitive, with retailers striving to offer the best value by maintaining competitive prices. She notes a 3.2% increase in the cost of a Christmas dinner for four, which is below the overall average growth in price per pack of 5.4%. Some festive items have even seen a decrease in price, such as Brussels sprouts and Christmas pudding, down by 0.6% and 22%, respectively, compared to last year.

Kantar expects December 23 to be the busiest day in-store this year, with €96 million in value sales, the same as last year. Online sales remain strong, with a 25.7% increase over the 12-week period, and shoppers spending an additional €37.3 million compared to last year.

In terms of market performance, Dunnes, Tesco, and Lidl outpaced the total market in value this month. Dunnes achieved a record share of 24.2% with 11.7% year-on-year growth, driven by a boost in new shoppers and increased volume per trip. Tesco holds 23% of the market with 11.4% year-on-year growth, boasting the strongest frequency growth among all retailers. SuperValu holds a 20.6% market share with 6.2% growth, and Lidl has a 13.2% share with 10.4% year-on-year growth, while Aldi holds an 11.7% market share with 1.4% year-on-year growth.