Recent take-home grocery figures from retail analyst Kantar indicate that Irish supermarket sales fell by 7.3% in the 12 weeks to 20 March 2022 due to inflation, with shoppers spending €78.2 million less on take-home groceries.
The statistics highlight the impact of spiraling costs, which is seeing supermarkets reducing special offers on their shelves in an attempt to offset rising prices. Sales of pasta and flour have soared since the start of February, as consumers stocked up in the light of potential shortages.
Kantar attributed the figures to the end of Covid-19 restrictions coupled with grocery price inflation of 3.7%. Spokeswoman Emer Healy said, “All our remaining Covid-19 restrictions have eased across Ireland and that’s making its mark on grocery sales. Not only are people heading back to the office, but they’re also enjoying returning to pubs, cafés, and restaurants, and as a result are picking up more food while on the go, rather than from the supermarkets. As spiraling costs bite at the heels of retailers and shoppers, supermarket prices are being pushed up”.
The Kantar assessment attributes inflation, rather than the pandemic, as being the main driver of changes to consumer behaviour in Ireland.
“This is a stressful time for consumers and that anxiety is being felt on the shop floor. With promotions down, shoppers are focused on seeking out the cheaper alternatives. Private label’s share of the grocery market is on the rise and has grown by 1.2% since last year. Retailers’ own lines now account for 46% of total grocery sales.”
Interestingly, Healy noted that certain pandemic grocery habits seem to have have become entrenched: “The growth of online shopping has been one of the most staggering shifts to shopper behaviour in recent memory, with all retailers now offering some form of online shopping.”