Grocery sales up 5.5% amid back to school season

grocery-sales-up-5.5%-amid-back-to-school-season

Grocery inflation moved higher in the four weeks to September 6, new figures from Worldpanel by Numerator show today, while grocery sales rose by 5.5%.

Worldpanel by Numerator reported grocery inflation of 4.28% for September, up from last month’s figure of 3.87%.

Worldpanel by Numerator said that value remained key for shoppers, with promotions getting one fifth of all sales. It also noted that more shoppers opted to get their shopping delivered to their front door, with home deliveries were up almost 4% year-on-year.

Today’s figures also show that preparation for the back to school season drove more frequent shopping trips, up 2.4% year on year. They also reveal increased volume on these trips, with an increase of 1.8%, as consumers stocked up for the new term.

Irish shoppers made 44.6 million trips to supermarkets in the four weeks to September 3, an increase of 1.65 million on last month.

But value remained the main priority for Irish shoppers, who spent €820m on promotional lines over the latest 12 weeks, giving a promotions value share of nearly 20.7%.

“Shoppers have kept a keen eye on value throughout the summer, with promotional sales now accounting for nearly a quarter of spend, up 8.5%. It’s clear that even amid the good weather and busier trolleys, Irish shoppers haven’t lost sight of getting the best deal for their money,” Business Development Director at Worldpanel by Numerator, Emer Healy, said.

Worldpanel by Numerator noted that branded goods had a strong period, growing 13% in value and adding €216m as shoppers stocked up on back-to-school staples with biscuits, savoury snacks, breakfast bars, sliced cooked meats and yoghurts all seeing a lift.

This marked an extra €38m spent on those categories alone versus last year. Value share for brands now stands at 50.4%.

But own label grew more modestly at 3.6%, adding €60m. Premium own label ranges held their own, up 11.2% in value, with shoppers spending an additional €15.6m on premium own ranges.

Meanwhile, online proved to be another beneficiary of the return to routine.

Irish shoppers made nearly eight online orders per household on average over the 12 weeks, an increase of 7.8% on the same time last year. This led to online sales jumping by 24.1% over the latest 12 weeks and shoppers spending an additional €48.9m on last year.

Today’s figures show that Dunnes continues to hold the biggest market share at 24.3%, with year-on-year sales growth of 8.2%. Dunnes shoppers visited more often, with trips up 5.6% on last year, while it also saw new shoppers to store. More frequent trips and new shopper recruits boosted Dunnes’ performance, contributing a combined €54.3m.

Tesco holds 24.1% of the market, with year-on-year value growth of 7.8%. Tesco saw a boost of shoppers returning to store more often in the latest 12 weeks, up 2.5%. Along with more frequent trips, new shoppers to Tesco stores contributed an additional combined €28.4m to overall performance.

Meanwhile, SuperValu holds a 19.2% market share, up 4% on the previous 12 weeks. It leads all major retailers on trip frequency, averaging 23.1 visits per person over the latest 12 weeks. Larger trips as well as new shoppers to store contributed an additional combined €42.9m to its overall performance.

Lidl market share stands at 14.7%, up 9.6% on last year, meaning the discount retailer has seen the highest growth over the latest 12 week period. Lidl saw existing shoppers return to store more often, as well as an influx of new shoppers who picked up more packs per trip which contributed an additional combined €44m to its performance.

Aldi holds 10.8% market share as new shopper arrivals alongside more frequent trips drove an additional €4.6m in sales.

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