The multi-billion euro Irish supermarket grocery market has shrunk compared to a year ago as easing restrictions give consumers a broader range of retail options for spending their cash.

Research group Kantar said this morning that the grocery market contracted 5.2pc in the 12 weeks to May 16 compared to the corresponding period last year, as the record effect of the first lockdown washed through the sector.

In the four weeks to May 16, grocery sales declined 6.9pc compared to the corresponding period a year ago, when in the midst of the first lockdown people battened down the hatches and treated themselves at home.

But despite the latest decline, consumers are still splurging on groceries, with sales remaining well above pre-pandemic levels.

“While grocery sales may have dipped… that does not reflect a tough comparison against the unprecedented spend we saw this time last year,” said Kantar retail analyst Emer Healy.

“People are still filling their baskets more than they were before the pandemic, and if we compare the past 12 weeks to the same time two years ago, sales are actually up 18.8pc,” she added.

SuperValu, controlled by the Cork-based Musgrave group, continued to hold the biggest slice of Ireland’s grocery market, with a 22.2pc share in the latest 12-week period reported by Kantar.

Its growth as primarily driven by shoppers returning to its stores more often, resulting in an additional €41m in sales.

Tesco is ranked second, with a share of 21.6pc, while Dunnes Stores had a 21.2pc market share in the latest period.

Aldi had a 12.2pc share and Lidl had 12.8pc.

“The data suggests that once more restrictions are lifted, shoppers will be keen to get back to their town centres,” said Ms Healy.

Kantar said there had been an extra 2.1 million trips made to supermarkets by consumers in the four weeks to May 16.

“We’ve already seen people embracing the reopening of beauty salons this month, for example,” said Ms Healy. “Irish shoppers have taken the chance to pamper themselves rather than trying their hand at home makeovers. Sales of haircare and hair colourants have dropped by 7.4pc and 9.4pc as a result.”

She said Irish brands have continued to perform strongly.

“Our data shows that Irish-made products and brands are generally growing faster than their imported counterparts,” said Ms Healy.

Cold and wet weather in May this year also dampened demand for barbeque-related products compared to May last year, when the country continued to bask in good weather.

In the latest 12-week period reported by Kantar, shoppers spent €300,000 less on chilled burgers and grill meats, and €979,000 less on ice cream. Consumers also spent €59m less on alcohol.

“As pubs and hospitality start to reopen next month, we expect sales through the grocers will continue to fluctuate as people can enjoy a drink out of their homes again,” according to Ms Healy.

Grocery market inflation stood at -0.7pc for the 12 weeks to May 16.