DUBLIN: The Irish grocery market has slipped into deflation for the first time in almost two years, dropping 0.7 percentage points month-on-month to -0.2%. This is according to the latest figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 26 March 2017. The latest figures reflect the impact of Easter on consumers and retailers alike. With the Easter weekend not until the middle of April this year, the holiday falls outside the latest 12 weeks while it was within the comparable period last year. As a result overall growth in the market fell to 0.7% – significantly below the level during the same period in 2016, demonstrating Easter’s significant boost to the market. The recent return to deflation has also contributed to the slowing of growth.
One of the main trends within the Irish grocery market this year is shoppers’ move towards own-label, with these goods now accounting for 54% of total grocery spend – up 6% in the past four years. Discount retailers Aldi and Lidl are a major contributing factor – their stock is predominantly own-label so they have driven this growth, with shoppers now also more accustomed to seeing own-label ranges on shelves. Supervalu has regained the title of Ireland’s largest grocer having been pipped to the post by Dunnes Stores for the past two months. Meanwhile, Aldi remains Ireland’s fasting growing retailer with sales growing by 5.0%. The retailer increased its market share to 11.3%, closing the gap with its closest rival Lidl to just 0.1%. Director at Kantar Worldpanel, David Berry says, “Only now are we starting to feel the effect of the weakened pound following the EU referendum as the price of British imports drops. For the first time since May 2015 grocery prices are falling so consumers are likely to have a little extra cash to hand, though this doesn’t necessary mean they’ll spend more in store. Many will see the break from inflation as a chance to cut down their grocery costs and pocket the savings instead.”
