Irish supermarkets have reasons to be cheerful after it emerged that a combination of increased consumer confidence and higher prices saw the amount of money spent in-store on everyday grocery items such as food, drinks and toiletries climb for the fifth consecutive quarter.
Over the second quarter of 2016, the volume of fast-moving consumer goods (FMCGs) bought in Ireland rose 1.3 per cent compared with the same period last year, according to Nielsen retail performance data released released on Monday.
The average prices paid for such goods also rose by 1.3 per cent, or more than twice the rate of general inflation.
The two factors combined have led to grocery retailers reporting a 2.6 per cent rise in takings at the tills, the fourth highest quarterly figure since Nielsen started measuring sales at this level nearly eight years ago.
The Irish market outperformed the European one over the three months to the end of June and had the fifth highest figures among the 21 European countries measured by Nielsen.
The average spending increase across all 21 countries was put at 0.8 per cent.
UK dip
When measured against grocery sales in the UK, the Irish performance looks even better. In the second quarter, the UK recorded a 1.6 per cent decline in sales, its worst performance in nearly two years.
Turkey reported the highest growth, with takings at the tills climbing by 8.9 per cent, year-on-year while neighbouring Greece had the greatest decline, with sales falling by 7.2 per cent over the year.
Of the big five western European markets, Spain on 2.1 per cent had the highest growth while the UK performed worst.
"The recent upturn in FMCG sales in Ireland continues, in terms of both volumes purchased and prices paid," said the managing director for Nielsen Ireland, Matt Clark. "This is being driven by positive consumer confidence which is good news for retailers in the Republic, who are witnessing some of the best growth numbers in Europe today."
The figures are backed up by sales data published earlier this month from Kantar World Panel which showed that Irish supermarkets had seen a significant bounce in trade as a result of the Republic of Ireland’s involvement in Euro 2016 this summer.
According to its supermarket figures, in the 12 weeks to July 17th, Irish supermarkets saw a sales bounce of over 3 per cent compared with the same period last year.
Alcohol sales over the same period went up by 11 per cent as consumers stocked up more often and bought more each time they shopped.
