THE multi-billion euro Irish grocery market has shrunk by 3.9pc compared to a year ago as easing restrictions meant people could ditch home cooking for restaurant visits.
Sales of items including tea and coffee – which jumped during lockdowns – have also fallen as consumers try to return to normality.
But the latest figures from research group Kantar for the 12 weeks to August 8 show that take-home grocery sales remain 13.4pc higher than in the corresponding period in 2019, underscoring how life has still not fully normalised after 18 months of the pandemic.
Emer Healy, a retail analyst at Kantar, said it is important that the decline in the overall grocery market in the latest period is put in perspective.
“Irish shoppers still spent a massive €333.2m more on take-home groceries [than] during this same period in 2019,” she said. “That represents double-digit growth of 13.4pc in two years.”
On the four weeks to August 8, take-home grocery sales dipped 0.9pc year-on-year.
“Some of the best-selling categories during the Covid-19 lockdowns are now seeing the biggest sales drops,” said Ms Healy.
“Sales of tea and coffee both fell 8pc as people have gradually got back to offices and enjoy taking a break in coffee shops once again,” she added.
Online grocery sales declined 0.7pc in the 12 weeks to August 8, compared to the corresponding period last year.
Ms Healy said online shopping has been “one of the most effective barometers” of consumer confidence throughout the pandemic.
“When online orders decline, it shows that people are growing more comfortable to venture to physical shops and eat out again,” she said.
Shoppers spent €917,000 less online in the latest 12-week period, while their basket sizes decreased by 4.4pc.
But while online order sizes have decreased, the percentage of shoppers placing online orders remained steady at 14pc in the latest period.
Ms Healy also said that the reopening of the hospitality sector has been “balanced slightly” by a surge in staycations this summer.
“While the overall [grocery] market is in decline, shoppers spent €7.7m more on soft drinks, €664,000 more on savoury snacks and €579,000 extra on chilled burgers and grilling meats,” she pointed out.
The latest 12-week period analysed by Kantar also includes the August bank holiday weekend.
The latest figures show that SuperValu, which is controlled by the Cork-based Musgrave group, again commanded the largest share of the grocery market in the latest period, at 22.6pc.
Tesco was second, with 21.3pc while Dunnes Stores was third, with 20.9pc. Lidl had 13pc and Aldi had 12.6pc.