Online grocery sales still on the rise as Dunnes stays on top

Grocery sales have slipped but are still considerably higher than before the pandemic

Grocery sales fell 4.5 per cent for the 12 weeks ending January 23rd but were still 11.2 per cent higher than the same period two years ago before the Covid pandemic took hold.

New figures from Kantar also show that despite the easing of restrictions, online grocery sales remained buoyant. Online sales were up 3.8 per cent versus the previous 12 weeks, with consumers spending €5.4 million more than at the same time last year.

Dunnes retained its position as Ireland's largest retailer, holding 23.1 per cent market share. The retailer benefited from the largest influx of new shoppers, who contributed an additional €42.2 million to its performance.

SuperValu followed closely behind with a market share of 22.2 per cent, while Tesco is just 0.1 percentage points behind this at 22.1 per cent. Lidl holds an 11.8 per cent share, with Aldi at 11.6 per cent.

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Chilled convenience goods were one of the main purchases bought during the period under review, with an additional €14.5 million spent on such products compared to the same 12 weeks a year earlier.

Inflation

The latest data shows that people are spending 13.3 per cent more on each trip to the supermarket than they did in early 2020. While much of this is linked to changes brought about by Covid, inflation also plays a part with it reaching its highest level since October 2020 in the 12 weeks ending January 23rd at 1.7 per cent.

In addition, the number of products sold on promotion dropped by 3 per cent versus January 2021.

Consumer prices rose by 5.5 per cent in the year to December according to the Central Statistics Office, the largest jump in 20 years.

The figures show a 7.6 per cent rise in purchases of non-alcoholic beverages last month as more people embraced Dry January. Sales of such products have increased by 5.8 per cent since 2018.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist