The amount of money spent in supermarkets dropped by more than €78 million in March, new figures from Kantar show.
Irish supermarket sales fell by 7.7 per cent last month while grocery price inflation reached 3.7 per cent, the highest level since October 2013.
Emer Healy, senior retail analyst at Kantar commented: “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 spiralling costs bite at the heels of retailers and shoppers, supermarket prices are being pushed up.
“The number of products sold on promotion has dropped by 5.7 per cent as the grocers look to mitigate supply chain pressures, and we’ve seen a marked increase in the average price of staples like bread, butter and toilet paper over the last 12 weeks.
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 per cent since last year. Retailers’ own lines now account for 46.3 per cent of total grocery sales.
“Headlines around shortages of pasta and flour have also seen sales of those products soar, with both categories boosted by 22 per cent and 30 per cent respectively during the month of March.
“The competition between the grocers is ramping up as people hunt for the best deals. Those grocers with strong messaging on lower average prices and promotional offers are best placed to come out on top.”
Meanwhile, Dunnes has retained its position as Ireland’s largest grocer with a 22.4 per cent market share this period.
SuperValu moved ahead of Tesco into second place, with the retailers claiming a market share of 21.6 per cent and 21.3 per cent respectively.
Lidl holds 13 per cent of the market share while Aldi holds 12.4 per cent.
