Aldi and Lidl also increased market share over the last year, according to figures from consultancy firm, Kantar Worldpanel. There has also been a growth in sales of cheaper private label products, which now make up a third of Ireland’s grocery spend.
In the 12 weeks ending November 28 the Irish grocery market recorded growth of 1.6%. This, however, was driven by price increases, which will hurt the pockets of consumers in the run-up to Christmas.
Grocery inflation rose from 3.3% in November to 4.2% in December and has hit the highest level since 2009, according to the research.
Tesco, however. is the clear winner among the multiples, maintaining strong growth of 5.8% to 27%.
Commercial director at Kantar Worldpanel David Berry said: “On top of price increases, the December budget cuts have added to consumer woes this month. In response to this, shoppers have reduced the size of their weekly shopping basket and continued to trade down to cheaper products, causing market growth to fall behind inflation. We’re seeing this in growing sales of cheaper private label products which now capture a third of our grocery spend. There is no sign yet of the traditional swing back to branded products in the run-up to Christmas.”
Source: The Irish Examiner