According to research group Kantar, with the potential for the annual store increasing by €662, Irish shoppers are having to make lifestyle changes to cope with the added pressures on their household budgets.
Basic necessities such as butter, milk, flour, eggs and bread are seeing some of the biggest price increases.
This increase means that the average annual store could increase by €662 if consumers buy the same products as last year, according to Kantar.
The research group says it’s no surprise we’re seeing Irish shoppers alter their lifestyles to cope with the added pressures on their household budget.
David Berry, Business Unit Director at Kantar, said: “Our latest figures show Irish consumer spending on takeaway groceries has fallen slightly by 0.7% in the 12 weeks to 7 August 2022. However, for the first time since February 2021, the last four weeks of the period saw sales in value increase by 1.6%, with buyers spending an additional 14.5 million euros.
“They are returning to the store more often, with the number of races up 2.3% to an average of 19 races per consumer over the last four weeks, but they are buying less per trip: volume sales have fallen by 9, 2%”.
“Despite recent growth in spending, grocery inflation remains a major challenge having hit 9.5%, the highest level seen since July 2008 when we started tracking the data,” Barry said. .
Food and beverage prices continue to climb, with consumers paying 8.1% more per item in August than a year ago.
“The impact of this on shopping budgets is now unavoidable for many Irish consumers,” he said.
“Branded items continue to feel the impact of shoppers looking for ways to mitigate rising prices. Over the past 12 weeks, Irish consumers have spent £42.6m less on products brands, down 3.1% Many buyers are turning to retailers MDD, with sales up 3.5% (€44.5m), the value ranges within recording the largest increase, up 14.7% Private label now accounts for 46.7% of total Irish grocery market shipments, up 2.7% from 2020 .
With inflation at record highs and Ireland facing a potential recession later this year, the differences between the current situation and the last economic downturn in 2008 are becoming clear.
“For example, it is becoming increasingly difficult for consumers to find bargains in-store: the percentage of groceries sold on sale in the last 12 weeks is 24.6%, compared to 34, 2% in 2010,” Barry said.
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