Month: December 2017

Dunnes retain top spot as Irish shoppers spend big on Christmas

Posted on | by Aisling Rafferty

Dunnes Stores remain Ireland’s largest supermarket in the crucial run-up to the festive period, according to the latest figures from Kantar Worldpanel. The fight for grocery market share remains fierce with only 0.3 percentage points separating the top three, with Dunnes occupying 22.5%, Tesco in second with 22.3% followed by SuperValu with 22.2%. Aldi and Lidl are tied for fourth position, capturing 11.2% of market share each. Lidl enjoyed the second fastest growth rate in the market behind Tesco, with sales growth of 3.3%.

“Dunnes Stores has always performed strongly in the countdown to Christmas and this year is no exception. Holding steady year-on-year with a 22.5% share of the market, the retailer has seen strong sales growth of 2.4% to retain the title of Ireland’s largest supermarket” according to David Berry, Director at Kantar Worldpanel. He says, “Dunnes Stores’ ‘Shop and Save’ initiative has proved the key to the retailers’ success. Shoppers now spend €2.30 more per shop than last year as customers are encouraged to up the value of their baskets to get extra money off.”

The data also shows that shoppers are more willing to part with their cash in comparison to this time last year. Sales of key festive items across Irish supermarkets has increased with the number of Christmas puddings sold up 12.6% and mince pies up 2.5% on this time last year. Wine sales are also up by 8%, giving the market an extra holiday boost worth €9 million.

Tesco have performed strongly in the last 12 weeks. Sales have grown by 4.7% compared with last year and this is now the fourth month in a row that Tesco has experienced sales growth of more than 4%. This strong growth has translated into increased market share – up 0.5 percentage points on this time last year, the supermarket now holds a 22.3% share of the market.

 

Bumper ‘Cyber Week’ for retailers says Retail Excellence Ireland

Posted on | by Aisling Rafferty

Pharmacy, cosmetics, electronics, technology and fashion have been the biggest draws for Irish shoppers so far this Christmas season. A report conducted by retail representative body Retail Excellence Ireland show a sales lift of up to 60% year-on-year during the final week of November. This week, dubbed ‘Cyber Week’ has fast become a crucial time for retailers as it sees online retail figures spike in time for Christmas. It stems originally from US retailers tempting shoppers by offering bargains around the American Thanksgiving holiday. Events such as Cyber Week have prompted many retailers to adapt their sales strategy with a view to elongating the Christmas shopping period.

Lorraine Higgins, Deputy Chief Executive of Retail Excellence Ireland, said the survey was representative of all the retail sectors in Ireland and the fact that retailers were reporting a 20-60% increase in sales is a very positive story. According to Higgins, the benefits to the Exchequer are also obvious as well and she highlights how Budget 2018 resulted in many with increased disposable income, which is impacting positively on consumer sentiment. A record number of people are also back at work and so will up their spending.

But she added that the retail sector is not without its challenges, and the amount of spending that is “leaking out” of the country on a daily basis is one of these challenges. Two-thirds of consumers’ online spend is going out of the country and further supports for retailers to take on the European online stage are needed. She said that Enterprise Ireland currently supports manufacturing and processing companies, and now it is time the agency also supported the retail industry.

Ms Higgins said that online sales is an increasingly important part of retailers’ business and its growth cannot be underestimated. She said that it will become up to 30% of retailers’ business and so is too big to ignore. There are difficulties due to poor broadband services in some areas of the country, but Ms Higgins said that €602 billion is being spent by European consumers online and Irish retailers have to get a slice of that ever-increasing pie. According to Department of Communications figures, 84% of Irish consumers by 2020 will buy “frequently” online, she added.

Irish households to spend average of €2,654 in the lead up to Christmas

Posted on | by Aisling Rafferty

Irish households are expected to spend an average of €2,654 in the run-up to Christmas, according to Retail Ireland, the retail representative body.

This figure is €870 more than any other month this year as Irish shoppers are expected to take advantage of rising wages and falling prices to spend significantly more in the coming weeks. The Ibec group predicts an increase in total sales of more than €100 million and as a whole, we’re expected to spend around €4.5 billion over the Christmas period, a figure up from the €4.4 billion spent in 2016.

A combination of lower prices and higher disposable income should see consumers more willing to spend. According to the report, the prices of goods have fallen by 2.2% in the first 10 months of 2017 and by 8.4% in the last three years. The pattern of lower prices is set to continue as consumers avail of discounts arising from Black Friday and Cyber Monday sales.While prices are falling, spending power is increasing as gross disposable income has climbed by 5.4% in the first half of 2017, following growth of more than 4% in 2016.

For supermarkets and department stores, it expects the week beginning 18 December to be a “make or break” week, with Christmas Day falling on a Monday. Thomas Burke, director of Retail Ireland, said department stores were expecting Christmas to be “a bit of a nail-biter this year” with last-minute shopping expected well into the final week.For 2017 the major trends centre around personalisation, fragrance, champagne and chocolates. For men, the focus will be on trainers, expensive branded and limited editions at mid-price, and for women, luxury accessories and niche fragrance remain firm favourites.

TVs, tablets and video game systems were key to driving sales for many retailers over Black Friday and Cyber Monday and significant demand for these products is expected continue right up until December 25th. While discounting and promotions were used to generate sales over the Black Friday weekend, there will be a renewed emphasis on margin retention on the run-up to Christmas.