Aldi and Lidl also increased market share over the last year, according to figures from consultancy firm, Kantar Worldpanel.
There has also been a growth in sales of cheaper private label products which now make up a third of Ireland’s grocery spend.
In the 12 weeks ending November 28 the Irish grocery market recorded growth of 1.6%. This, however, was driven by price increases which will hurt the pockets of consumers in the run-up to Christmas.
Grocery inflation rose from 3.3% in November to 4.2% in December and has hit the highest level since 2009, according to the research.
The charm of the discounters is still evident with Aldi and Lidl growing their market share by 18.2% and 9.4% respectively in the last year.
Aldi now has a market share of 3.7% and Lidl has a share of 6%.
Tesco, however. is the clear winner among the multiples, maintaining strong growth of 5.8% to 27%. SuperValu has a 19.6% market share while Dunnes has 23% of the market.
Premium retailer Superquinn was also hit by shoppers trading down and has seen a 4.4% decline in its year-on-year growth as well as a loss of market share.
Commercial director at Kantar Worldpanel David Berry said: “On top of price increases, the December budget cuts have added to consumer woes this month. In response to this, shoppers have reduced the size of their weekly shopping basket and continued to trade down to cheaper products, causing market growth to fall behind inflation. We’re seeing this in growing sales of cheaper private label products which now capture a third of our grocery spend. There is no sign yet of the traditional swing back to branded products in the run-up to Christmas.”
Pudding prices soar
CHRISTMAS puddings are a tradition of the festive season, but this year shoppers must be prepared to spend a lot more for the luxury.
The price of Christmas puddings have gone up 17% since last year, while packet stuffing has soared by 12%. However, in contrast, consumers will pay almost 3% less for their Christmas turkey and 6% less for bacon rashers.
They will be able to celebrate these savings too with a nice cold drink as heavy festive promotions have led to an 11% reduction in the cost of beer and lager and 3% for wine.
This story appeared in the printed version of the Irish Examiner Tuesday, December 21, 2010