Shoppers returned to stores more frequently during June, with store visits up 9.2% compared to the previous year. This equates to an additional two trips in June 2023 versus June 2022.
12 weeks data shows 15.8% grocery inflation
The latest 12 weeks to 11th June 2023 saw grocery sales increase by 11%. Grocery Inflation (15.8%) continues to be the key driver of growth within the market. The percentage of packs sold on promotion also increased to 25.8% compared to 24.7% for the same period last year. Shoppers are choosing promotional items to help reduce costs.
Summer is here
During the last four weeks, Irish consumers spent an additional €2.9m on beer and lager, €1.9m on chilled burgers and grills and €1.2m on fresh sausages. With the cost-of-living crisis continuing, consumers are more conscious of waste and are looking for easier meals. Sales of total chilled ready meals increased by 20% with shoppers spending an additional €2.9m year-on-year.
Retailer performance:
Dunnes, Tesco and Lidl all grew ahead of the market. Dunnes continues to hold the top place in the retail market with 22.9%. This growth is driven by shoppers returning to store more often (+2.1%) and new shoppers to store (+3.3 percentage points). Tesco is second place with 22.6% of the market. Lidl hit a record new share of 13.7% of the market with the fastest growth in the market (15.5%).
| Retailer | Market Share % | Growth YoY +/- |
|---|---|---|
Dunnes | 22.9% | 15% |
Tesco | 22.6% | 13.5% |
SuperValu | 20.7% | 6% |
Lidl | 13.7% | 15.5% |
Aldi | 12.3% | 10.3% |
Key insights for a food and drink producer
The importance of own label products
Own label or private label products continue to show strong growth. Shoppers continue to trade down to own label products with sales rising 15% compared to brands which grew at 7.8% during the period. Own label products in the value category saw the strongest growth and is up 28.9% year-on-year.
Online presence
Online sales continued to grow over the 12-week period, with a 2.2% increase year-on-year. Online attracted new shoppers who contributed to an additional €3.5m to its performance, with 17% of Irish households purchasing online. If you currently have an online presence, it is essential to review your website. Is it fit for purpose? Is it easy for potential customers to purchase products? Both the Local Enterprise Office and Enterprise Ireland can assist with grants and other supports. If your products are listed on the main retailer websites, do a review, and make sure the right pictures are used and with the right picture quality.
Seasonal Period
Retailers and producers place great significance on seasonal periods. With Summer in full flight, it's crucial for producers to assess products in their respective categories. Take a glance at nearby products for fresh ideas, popular trends, and flavours, which can often be adapted from other categories. This is critical as you plan for the next key seasonal periods within your categories. Retailers will be analysing market products, so it's imperative for producers to do the same and plan accordingly for Summer 2024.
If you would like to discuss your retail strategy, please contact me on: stephaniewalsh@ifac.ie or call me on 087 606 1478