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Grocery spend down as movement restrictions ease
Grocery spend up by €577.7 million

24 Aug 2020 / ireland Print

Grocery spend down as movement restrictions ease

Take-home grocery sales growth in Ireland slowed to 18% year on year during the 12 weeks to 9 August. 

While still significantly higher than pre-pandemic levels, grocery spend of €930 million over the latest four weeks was the lowest since February as the country eases out of lockdown.

Retail analyst Emer Healy comments: “With restrictions on movement and eating out lifting, grocery spend is climbing down from the record-breaking heights we saw in previous months.  

“A year-on-year comparison shows that shoppers still visited stores four fewer times over the 12 weeks, but trends are less stark than they were at the peak of lockdown.

Habits

“The relaxing of rules across much of Ireland means shoppers are less inclined to favour large, infrequent shops.  People spent approximately €5 less per trip over the past four weeks compared with April, picking up fewer items in store as they start to return to pre-COVID-19 habits.”

However, online sales continued to accelerate.  A growth rate of over 125% drove online food shopping to a record market share of 4.6% of total sales this period.

Economic uncertainty and predictions of recession have also failed to dampen consumer appetite for branded groceries. 

Brands won an additional €245 million in sales and outpacing own brand goods to grow by 23.4%. 

Aldi and Lidl have both seen branded sales soar, but the retailers’ reputation for value means they also stand to benefit should shoppers look to tighten their belts. 

Lidl loyalty card

Aldi recorded strong growth of 18.4% in August while Lidl has launched a loyalty card and has captured its highest ever market share of 12.8%. 

Off-licence alcohol sales have also begun to taper.  Alcohol sales are up by 56% over the past 12 weeks, but slowing significantly from the 76% July growth rate as Irish people return to socialising out of home. 

SuperValu continues to hold the highest market share at 22.3% and Tesco took second place at 21.1%. 

New shoppers

SuperValu is the only retailer to attract new shoppers this period, contributing an additional €624,000 to its growth. 

Shopping volumes are up 25% at Tesco this month. 

Dunnes recorded its highest average spend per trip while also experiencing an increase in volumes and higher average prices to hold a 20.5% market share. 

Gazette Desk
Gazette.ie is the daily legal news site of the Law Society of Ireland