Irish grocery market sales declined by 6.4% over the 12 weeks to 28 November, the latest figures from Kantar show.
However, growth remains strong compared with pre-pandemic times, and grocery sales were up 8.9% versus the same period in 2019.
However, grocery sales are now being compared with last November when non-essential shops and offices were closed.
Fewer groceries are being bought for meals at home and, as a result, grocery sales dropped by 7.1% during the past month.
Analyst Emer Healy said that this decline will soften as people spend more time around their kitchen tables in the coming weeks.
Inflation
She added that shoppers would feel the impact of grocery price inflation on their Christmas budgets this year, which stands at 1.2% over the latest 12 weeks.
The price of a Christmas meal for four now stands at €30.97, which is 4.3% higher than it was last year.
“Despite higher prices, shoppers are still eager to make up for lost time this Christmas, and it’s clear that people are in the mood for a well-deserved treat after a long year of lockdowns.
Online
Online grocery sales also received a boost. More than one in ten people purchased groceries online this month and, as a result, digital grocery sales soared by 14.3% over the past four weeks.
First-time online grocery converts were the main driver behind the jump in sales, showing the channel is yet to hit its ceiling in Ireland.
“We could see online orders grow even further as people start to limit time spent out of their homes under the latest restrictions,” said Healy.
Both SuperValu and Tesco have heavily invested in growing their digital capabilities since the start of the pandemic, with online sales up by 8.8% and 11.4% respectively.
SuperValu holds a 22.1% share of the overall market this period, while Tesco’s share stands at 21.4%.
Dunnes holds the biggest share of the market this period at 22.8%. The grocer benefited from the biggest influx of new shoppers among all retailers, a trend which added €34.6 million to its overall performance. Aldi holds a 12.5% share of the market over the past 12 weeks, with Lidl just behind at 12.4%.