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Grocery sales slow down slightly in early summer

Grocery sales slow down slightly in early summer

Grocery sales have slowed down slightly in the 12 weeks to 14 July compared to the same period last year, according to the latest Kantar figures.

Overall sales are up 2.7%, compared with a 3.1% increase last year, which was thanks to a bumper summer featuring soaring temperatures and the men’s football World Cup.

As such, the slowdown was not unexpected.

Two Irish retailers experienced a year-on-year decline, with Tesco sales dropped 0.8% in the 12-week period, while SuperValu was down 0.5%.

Dunnes was the only one of the three traditional retailers to record year-on-year growth this period, with sales up 6.3%.

While the average price consumers are paying has risen across the board, Lidl has seen the greatest increase as shoppers have bought more of its premium products.

“Nearly 100,000 more shoppers bought Lidl’s top tier own label products this period compared to last, with an additional 13,000 shoppers buying branded goods as well,” according to Douglas Faughnan of Kantar.

The retailer now accounts for 12.2% of the market

Both Dunnes and Lidl have capitalised on a growing trend among shoppers who prefer to prepare meals from scratch.

Inspired by the success of meal kit brands and convenience cookbooks, recent package deals on the constituent ingredients for home-cooked classics like spaghetti carbonara and bolognese have been popular at both retailers.

Sales of those key meal ingredients recorded strong growth across all the retailers, with herbs up by 26%, spaghetti by 10%, passata by 15% and mince by 11% – all comfortably ahead of the overall market.

The latest figures also show that Aldi is the fastest growing supermarket in Ireland, with sales surging ahead by 12.8% in the 12-week period.

Welcoming the results, Giles Hurley, CEO Aldi UK and Ireland, said: “We are delighted to be the fastest growing retailer in Ireland for the 9th month in a row, achieving a record 12.5% market share, growing twice as fast as any other supermarket.”

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