Tesco continues to lead the Irish grocery sector with a market share of 25.2%, despite a drop in sales year-on-year, according to the latest market share data from Kantar Worldpanel (12 weeks ending September 14).
Tesco shoppers are increasing the number of trips they make to its stores, the study found, although David Berry, commercial director at Kantar Worldpanel says, “the challenge for Tesco lies in making sure its customers maintain their in-store spend, which has decreased by almost €2 on average over the past year.”
SuperValu remains close on the tail of Tesco with a 24.7% market share this quarter, and the retailer has attracted an extra 40,000 households through its doors this year, boosted by its own brand offering. Berry says that the trade-off is that reduced customer spend in store has meant a slight dip in sales for the retailer, compared with last year. On average, SuperValu customers have reduced their spending by €16 over the past 12 weeks by choosing more own-brand products.
Meanwhile Dunnes (22.1% market share) continues to performed strongly, with increased sales for the fifth successive month. Berry explains the reason for its success: “A rise in the number of round euro priced branded goods on sale has drawn customers into its stores, contributing an additional €15 million in sales for the retailer. Some 37% of branded goods sold in Dunnes are now on sale at a clear round euro price point, compared with just 32% last year.”
Both Aldi (8.5% market share) and Lidl (8.3% market share) also continue to post admirable performances, with sales up by 15.1% and 12.3% respectively over the past year. Berry says the discounters have both enjoyed record levels of market share over recent months and this strong performance has continued thanks to increased footfall over the past 12 weeks.
He says, “Lidl has attracted 41,000 new shoppers this quarter as shoppers were enticed by back to school offers. Meanwhile, Aldi’s sales have been boosted as more shoppers chose to visit the retailer for their main grocery shop, with customers increasing their spend by €1.20.”
Grocery inflation stands at 1.6% for the 12 week period ending September 14, 2014, up slightly from 1.5% last period, and at one of the lowest levels in almost three years.
