Ireland | The grocery bill Irish consumers paid for in December 2023 passed a record-breaking €1.4 billion, according to the latest figures from Kantar. Average households forked out an all-time high of €767 on groceries across the month, an increase of €22 compared to a year prior.
The take-home grocery value sales grew 7.8 percent. In comparison, the number of packs bought declined by 5.3 percent. Irish shoppers made close to 42 million trips to grocery stores over the four weeks leading to 24 December, 3.4 million greater than the year prior and the most significant number recorded at Christmas.
Kantar's research revealed that Friday, 22 December, was the most popular shopping day over the Christmas week, with shoppers spending €92 million in stores and making two million trips on Friday, 22 December alone. This equals 36 percent of Irish households being in stores that day. The second busiest day was Saturday, 23 December, racking up €87 million. Thanks to Christmas Day falling on a Monday, shopping trips were staggers across the weekend leading up to it.
Despite value sales, grocery price inflation has remained the driving factor behind increased spending. Sitting at 7.1 percent for 12 weeks to 24 December 2023, marking it the eighth consecutive month for a drop in inflation, falling gradually from the 15.5 percent rate in January 2023. It is anticipated that this gradual decline will continue in 2024. While inflation rates are falling, they are still incredibly high, with Irish consumers facing significant pressures on their household budgets.
While there has been a significant increase in value sales, the primary driving factor remains grocery price inflation rather than an uptick in purchasing. Grocery inflation has dropped to 7.1 percent for the 12 weeks ending 24 December 2023, marking a considerable decrease from the 15.5 percent rate observed in January 2023. This marks the eighth consecutive month of inflation decline, offering favourable news for consumers. It represents the lowest inflation level since August 2022; a gradual decline is anticipated throughout 2024.
Retailers strategically focused on attracting shoppers during the festive season, with promotions playing a central role. In the 12 weeks to 24 December 2023, nearly 29 percent of all spending was on items with promotional offers, reaching the highest level since January 2023 and amounting to €117 million more than the previous year. Major retailers such as Dunnes, Tesco, and Online experienced robust growth in sales through promotions, outpacing the total market's growth of 12.7 percent.
In addition to promotions, retailers emphasised their own-label lines, which continued to attract Irish shoppers throughout 2023. Private label goods, especially premium ranges, demonstrated strong performance during December, with year-on-year growth of 10.4 percent and 11.8 percent, respectively. Irish consumers, however, also showed interest in treating themselves with branded goods during the Christmas period, spending an additional €105 million compared to Christmas 2022, resulting in brands achieving their highest value share since January 2023 at 50.7 percent.
The desire for the traditional Christmas dinner remained strong in 2023, with increased volumes of potatoes, carrots, broccoli, and turkey. However, Brussels sprouts and mince pies experienced declines in popularity. Despite this, Irish shoppers retained their sweet tooth, with sales of seasonal biscuits, chilled desserts, and chocolate confectionery recording positive growth.
