Grocery Retail Market Shares

SuperValu ahead of Dunnes as overall grocery sales increase by 17.2%

Grocery sales in Ireland increased by 17.2% in the 12 weeks to 19 April as shoppers adjusted to life under lockdown. While grocery sales in the main are strong, retailers will have felt the effects of social distancing restrictions on food on the go purchasing and other non-grocery categories.

According to the latest figures from Kantar Worldpanel, year-on-year grocery growth slowed slightly from March levels to 22.5%. The average household visited the grocers 19 times, two times fewer than the same period last year as people followed Government advice to stay at home. “It’s been a challenging few weeks and we’ve all been grateful for how hard the grocery retailers have been working to keep us fed and watered. In the absence of dinners with friends and lunch on the go, many more meals are being eaten in the home and grocery sales have risen accordingly. But social distancing means people are less likely to be buying categories like clothes, food on the go, and general merchandise. This means for some retailers, the overall picture will be more modest.” explains David Berry, managing director of Kantar Ireland.

David Berry continues:In an effort to get everything they need in one go and cater for all the additional meals and snacks eaten at home, shoppers are adding an extra four items to their baskets each visit, increasing their monthly grocery bill by €118 on average. The change in shopper behaviour adds up to an extra €440 million spent on grocery in the past 12 weeks, but this additional spend is impacting individual retailers in different ways.

Grocery Market Share

In terms of individual retailer’s growth, Lidl was the fastest-growing of all the retailers over the 12-weeks boosting sales by 22.1% and increasing its market share to 12%. Aldi grew by 15.6% to hold an 11.8% share. SuperValu’s large store network meant the retailer benefitted from shoppers choosing to visit outlets closer to home, and was the only retailer not to experience reduced footfall during the past four weeks. David Berry says “Before lockdown, Dunnes customers already spent 80% more than the average shopper each visit at €43.80, which means the retailer has experienced less of a jump in spending per trip than those grocers starting from a lower base. Dunnes is growing slightly behind the rest of the market as a result, but these are extremely narrow margins and only 0.5 percentage points separate the three retailers at the top of the table.”

Online shopping increases while ready meals decline

Not unexpectedly, demand for online grocery soared as people try to limit their contact with others. 10% of Irish households received an online grocery delivery in the past four weeks compared with 6% last year with an additional €20.6 million spent online this month.

Another consumer trend during life in lockdown according to David Berry is an increase in home cooking. “People are turning to cooking from scratch as a good way to keep their families entertained at home. Sales of ready meals are in decline but 50% of Irish households bought baking supplies in the past four weeks, with flour up 52% and sugar up 43%. Those shoppers trying to recreate their favourite takeaway dishes have also boosted sales of ethnic ingredients by 41% and herbs and spices by 61%.”

Grocery Retail Market Shares

Dunnes remain top grocery retailer as Lidl and Aldi growth continues

Dunnes Stores retained top spot in the battle of the supermarkets with a 21.8% market share for the 12-week period ending July 14. This marks its 11th straight time on top of the grocery retail market. Douglas Faughnan, consumer insight director at Kantar, said Dunnes had attracted an additional 65,000 shoppers during the 12-week period with shoppers spending an average of €42 per visit, the most of any supermarket. He said Dunnes typically performs strongest in the second half of the year so these figures mean the retailer has “a solid base as we move towards its core trading season.”

In line with the overall market trend for increased spending by consumers, Lidl has seen the greatest increase of as shoppers bought more of its premium products. Douglas Faughnan explains: “While Lidl has witnessed a slight rise in overall shopper numbers, its success encouraging people to trade up to its premium own label and branded lines is a key reason behind its growth. Nearly 100,000 more shoppers bought Lidl’s top tier own label products this period compared to last, with an additional 13, 000 shoppers buying branded goods as well.” Lidl recently opened their 200th store and announced plans for 50 more stores around Ireland in the coming years.

Both Dunnes and Lidl have capitalised on a growing trend among shoppers who prefer to prepare meals from scratch. Inspired by the success of meal kit brands and convenience cookbooks, recent package deals on the constituent ingredients for home-cooked classics like spaghetti carbonara and bolognese have been popular at both retailers.

Aldi has seen the most dramatic growth of all the retailers during this period, with growth hitting double digits. Sales at the discounter were 12.8% higher than a year ago for a 12.5% share – both records for the German retailer. Lidl’s 5.4% year-on-year sales growth leaves it on 12.2%.

Dunnes still in top spot as grocery retail sees record Bank Holiday boost

Irish grocery sales hit record levels during Easter week as shoppers splashed out €208.2 million during Easter week. The overall sector grow by 4.1% in the 12 weeks to 21 April 2019, which saw all the major retailers return to growth, with Dunnes taking the crown of the nation’s largest grocer for the eighth consecutive period.

Douglas Faughnan, Consumer Insight Director at Kantar, comments: “With both the St Patrick’s Day Bank Holiday and the Easter weekend giving shoppers cause for celebration over the past 12 weeks, there have been plenty of excuses for people to get in store and spend. Shopper visits to the major retailers grew by 1.3% on last year, yielding an additional €28.7 million of value. Consumers spent a total of €44 million on Easter eggs leading up to Easter Sunday, while fresh lamb, a traditional favourite, generated €29 million.”

Dunnes posted sales growth of 6.1% as well as retaining its number one position – the highest growth seen by the retailer has seen since November 2016. Douglas Faughnan explains: “Dunnes has continued to push towards premium items through its Simply Better collection and partnerships with specialists like James Whelan Butchers and Sheridan’s Cheesemongers. Encouragingly for Dunnes, shoppers appear to be happy to spend more in-store. The average price paid at the retailer is up 1.9% on last year, generating an extra €10 million in sales.”

Douglas Faughnan continues: “Tesco’s growth of 2.8% is its strongest of the year so far. It’s all the more impressive that the retailer has managed to maintain increasing sales considering at this time last year it was growing at 6.2%. Tesco’s own label offer now accounts for 47% of its sales and is increasing at 4.3%, boosting the retailer’s overall performance.”

SuperValu also experience growth, bolstered by a robust performance in fresh food. Fresh lamb, fish and beef sales were up by 13.2%, 12.8% and 11.0% respectively – underpinning the retailer’s reputation as a traditionally strong performer among Easter dinner staples.

Aldi and Lidl, while continuing to perform strongly in Dublin, are making major gains outside of the capital as well. Douglas Faughnan comments: “Growth of 18% for Aldi in the Connaught and Ulster region was the strongest increase recorded by any retailer in any one region, while Lidl’s 13% growth in Munster makes it the fastest growing grocer in the southern provinces.”

Irish shoppers are set to spend over €1 billion on their Christmas groceries

Irish shoppers are set to spend over €1 billion on groceries throughout December for the first time as competition gets even fiercer between grocery retailers over the Christmas period.
According to research from Kantar World Panel, Irish households spent €968.2 million last December in supermarkets, and “all the signs so far indicate that this year Irish households will break the €1 billion threshold for the first time”

Overall the grocery market grew by 2.9% in the 12 weeks to 2 December according to Kantar’s latest figures. Dunnes Stores remains the largest grocery retailer, with a market share of 22.4% after seeing sales growth of 3.4% for the period. SuperValu’s sales rose by 1.3% over the same 12 weeks, cementing it in second place with 21.7% share of the market. Tesco is in third place with a 21.6% market share and growth of 0.3%, However, discount retailers Aldi and Lidl saw the strongest growth of all for the second consecutive period, with sales up 7% and 4.1% respectfully. Aldi now has 11.6% of the market, with Lidl on 11.3%. Aldi UK & Ireland Chief Executive Giles Hurley said the retailer is “delighted to be the fastest growing retailer in Ireland for the third month in a row,” adding Aldi has “opened new stores in Blackrock, Co. Dublin, Graiguenamanagh, Youghal, and Killaloe over the last month.”

Consumer Insight Director at Kantar Worldpanel Douglas Faughnan said of the figures: “Promotions continue to play an important role among the traditional retailers as they try to attract new shoppers and encourage customers to spend more in store. “SuperValu has performed strongest here, with the average value of a trip to the retailer increasing by €1.56 to €24.20 this period. As preparations for Christmas accelerate during December that figure is only likely to rise. “However, Dunnes’ long-running voucher programme means shoppers spend significantly more on each trip there than at any other retailer. Dunnes’ average spend per trip of €42.60 is one of the main reasons the retailer has retained the number one spot this period.”

Grocery Retail

Shoppers spend €65m across the border as Christmas spending begins

With Brexit continuing to dominate the news and the impact of a hard border still unclear, the latest grocery market share figures from Kantar Worldpanel show the value of cross-border shopping is at its highest level for five years. €64.5 million was spent shoppers from the Republic of Ireland in the 12 months ending in November 2018.

Over the past year just over one in eight households from the Republic of Ireland made at least one trip north of the border to do a grocery shop. That equates to more than 207,000 shoppers” says Douglas Faughnan, consumer insight director at Kantar Worldpanel.

“While these excursions account for a relatively small percentage of each family’s supermarket visits – on average, eight out of 270 annual trips – they spend substantially more shopping when they cross the border. Shoppers from the Republic spent €38.50 on an average shop in Northern Ireland while the average spend back home is €23.70. This is likely to be because they want to make the extra effort worthwhile.”

One of the biggest attractions for shoppers looking for a cross-border bargain is alcohol. Douglas Faughnan explains: “Of the €65 million spent by Republic of Ireland shoppers in Northern Ireland over the past year, a quarter went on alcohol, adding up to just over €16 million. No other food or drink category comes close, with dairy products accounting for the next largest share of cross-border spend, at 5.9%.”

The strength of the euro against sterling over the past two years has made cross-border shopping even more appealing, but there have been benefits for those spending in the Republic as well. Douglas Faughnan explains: “The cost of importing products to Ireland from Britain has fallen while goods made in Ireland with British ingredients have typically been cheaper to produce. This has allowed retailers to pass savings on to their customers – vital in such a competitive market – and as a result, grocery prices in Ireland have for the most part been falling since March 2017.”

“However, for only the second time in 21 months, grocery prices have increased, suggesting the prolonged period of grocery price deflation may be coming to an end.”

Halloween provided €30m boo-st

The four week run up to Halloween generated an uplift of almost €30 million for supermarkets. Supplies for parties and trick or treating were in high demand with confectionery sales up 4% compared with the same period last year. 17% of Irish households bought a pumpkin this Halloween, spending a collective €1.5 million on the seasonal vegetable.

Faughnan says: “With Halloween wrapped up and the arrival of the much-anticipated Christmas TV adverts this week, Irish shoppers are already getting excited for the festive season. In fact, more than 50,000 people had already bought a Christmas pudding by the 4th November.

Dunnes takes top spot while Aldi achieves record market share

Dunnes Stores has reclaimed the top spot in the Irish grocery market for the first time since February this year, according to the latest grocery market share figures. The figures from Kantar Worldpanel which deal will with the 12 weeks ending 7 October 2018, Dunnes possessed 22.1%, due in part to strong sales growth of 3.4%.

Consumer insight director Douglas Faughnan says “Dunnes traditionally performs strongly over the festive period and the retailer may feel like Christmas has come early this year. While it is too soon to assess the full impact of its new Everyday Savers offer, which prices many own brand everyday items at a euro or less, Dunnes’ continued focus on shopper campaigns has helped to attract an extra 14,000 shoppers this period.”

After six consecutive periods at the top, Tesco was the second-largest supermarket, accounting for 21.5% of total grocery sales. With online grocery sales up 15% compared to this time last year, the retailer has looked to increase its dominance of online grocery in Ireland by introducing new e-commerce initiatives. Douglas Faughnan continues: “Tesco’s recent announcement of free delivery for over 65s when they spend €50 or more shows it is looking to further cash in on the growth of online shopping in Ireland. Although just 2.4% of grocery retailing comes through e-commerce at present, this figure is forecast to hit 5.0% by 2022, and retailers are now looking at new ways to capture their fair share of the online pie.”

SuperValu had 21.4% of Irish grocery sales. Douglas Faughnan explains the contrast of how the retailer performs in Dublin vs Munster. “Although SuperValu holds a 26.0% share in its Munster heartland, the retailer is less represented in Dublin, where it only accounts for 19.4% of sales. By contrast, Tesco and Dunnes perform more strongly in the capital, with shares of 23.6% and 26.1% respectively. SuperValu’s owner Musgraves will be hoping its recent acquisition of the Donnybrook Fair retail chain can help secure more footing in the capital.

For the discount retailers, Aldi have achieved a record market share of 11.8%, due in part to sales growth of 4.5%. The retailer’s Swap & Save campaign, which challenges shoppers to see how much they could save by switching to Aldi, has clearly made a difference to sales figures. The grocery chain attracted an additional 28,000 shoppers, with family shoppers accounting for over 80% of its growth.

 

 

Sun, sports and Love Island boost supermarket sales

All major Irish supermarkets experience growth for the sixth period in a row according to the latest figures from Kantar Worldpanel.

The grocery market continues to be intensely competitive with just 1.5 percentage points separating the top three retailers. Tesco is the fastest growing retailer, a title it holds for the seventh consecutive period, with sales up 4.8% compared to this time last year. Tesco is the only one of the three major retailers to witness a further decline in the average price paid per item, but this has been counteracted by shoppers spending more. Customers spent an average of an extra €21 during the 12 weeks ending 12 August, through both visiting the supermarket more often and buying more items each time.

SuperValu continues to perform strongly with sales up by 2.4% and a market share of 22%, thanks in part to owner Musgraves prominent SuperValu of the GAA All-Ireland Hurling and Football Championships. The brand also performed well outside of its Munster stronghold seeing sales in Dublin up by 3.6% and the rest of Leinster growing by 6.2%.

Dunnes Stores’ saw overall growth of 1.9% during the period, thanks in part to the retailer’s ‘Mix and Match’ promotion on their barbeque meat range which was advertised in the lead up to the August Bank Holiday and boosted sales of chilled burgers and grills by a third.

The discounters also saw good growth with seeing sales growth of 2.9%. Aldi were also the only retailer to see a notable increase in shoppers, welcoming an extra 40,000 customer during the 12 weeks. Lidl achieved sales growth of 1.9% to hold market share at 11.9%.

Douglas Faughnan, consumer insight director at Kantar Worldpanel, comments: “Though the retailers continue to jostle for market share, the grocers have all benefited from the spike in consumer spending as shoppers’ splash out more during the warm weather.

“It’s been a summer of indulgence for customers. Alcohol is continuing to boom – overall sales of beer, wine and cider are up 10%. Ice cream is also up by a third compared to this time last year – equivalent to an extra €10 million – and soft drinks sales have jumped by 13%. The August bank holiday provided the retailers with another opportunity to cash in, with targeted advertisements and promotional activity directing customers towards specific categories such as fresh meat, fruit and vegetables and branded treats.”

Sporting events like the football World Cup and pop culture TV favourites such as Love Island have also had an impact on what shoppers are choosing to buy. Douglas Faughnan explains: “Men’s skincare products and shaving soaps grew at double the rate of the overall grocery market, while sales of razor blades rocketed by 15% as Love Island enthusiasts were potentially inspired by the contestants’ hairless look. Time spent in front of the TV meant shoppers spent less time on home cooking, to the benefit of frozen and chilled ready meals sales, which jumped by 16% and 6% respectively.”

BBQ sales see Tesco soar to 1st place in grocery wars

Tesco have captured 22.5% of grocery retail market share thanks to their emphasis on their BBQ and chilled meat ranges during the recent heatwave.

Tesco were also the only retailer to increase their market share during the 12 weeks ending 15 July 2018. The supermarket brand’s extensive ‘Grillin’ and Chillin’ marketing campaign saw it make a big push on key barbecue items, with products like ice cream, chilled poultry and chilled burgers all performing strongly and resulting in shoppers putting, on average, 4.7% more items in their baskets on each trip.

SuperValu achieved overall sales growth of 2.6%, they’re biggest jump since October 2016. The retailer traditionally performs well in summer categories as its store network is convenient for shoppers making more frequent top-up shops during the key barbecue season. This year has been no exception, with chilled burgers, fresh fish, and fresh lamb all recording double-digit sales growth.

Dunnes Stores now accounts for 21.2% of grocery sales in Ireland, thanks to sales growth of 1.9% this period. The average Dunnes basket now features 20 items, a 5.7% increase compared to the previous 12 weeks and more than any other retailer.

Meanwhile, Lidl and Aldi have 11.9% and 11.5% market share respectively, with both posting sales growth in the most recent 12 weeks. Aldi was the only retailer to see a slight rise in shopper numbers this period, with the impact of its current Swap & Save campaign potentially contributing to increased shopper penetration.

Across the market, the recent rising temperatures and the World Cup saw sales soar by 3.1% with two of the biggest winners being lager and bottled water. Water sales rose by 27.3% while lager sales saw growth of 11.6% or the equivalent of an additional 7 million pints. This was as a result of both increased shopper numbers and shoppers buying larger quantities.

There’s a number of factors contributing to the spike in water sales according to Douglas Faughnan, consumer insight director at Kantar Worldpanel “A number of things may have influenced the surge of bottled water sales in Ireland – in particular the recent weather, speculation surrounding water shortages and this month’s hosepipe ban. Irish shoppers bought bottled water on 1.8 million more occasions in the latest 12 weeks compared to the same period last year, helping sales grow by over a quarter. Furthermore a Europe-wide shortage of CO2 may have stifled sales of carbonated water, which grew at a third of the rate of still water, with retailers and manufacturers shifting their focus to stills where necessary.”

Dunnes stay top of growing grocery market as shoppers spend extra €96m

Dunnes remain top of growing grocery market as Irish shoppers grocery spend increased by €96 million compared to the same period last year.

The Irish grocery market continues to show positive momentum with the latest figures from Kantar Worldpanel, showing growth hit 3.9%. Dave Berry, director at Kantar Worldpanel, said: “Shoppers have spent an additional €96 million on groceries over the latest 12 weeks compared to last year and two factors have led to this growth. “First, shoppers are choosing to buy slightly more expensive items and this is reflected in continued sales growth for brands. Second, customers have picked up more items during their weekly shop, with the cost of the average trip 60c more than this time last year.”

Dunnes Stores remain in the top spot, despite growth falling slightly compared to the previous period, from 5.7% to 5%. Tesco sits in second place but top the charts in terms of growth in the three month period ending 25th February. Berry said: “Tesco tops the charts in terms of growth this month, with sales increasing by almost 7% and market share hitting 22.3%. This time last year the retailer was facing a number of store closures due to strike activity and its most recent performance is reflective of this. The strongest performance for Tesco has been among younger shoppers, with share among the young family demographic increasing from 26.5% last year to 29.3% this year.”

SuperValu sits in third position with market share of 22.0% placing it just 0.3 percentage points behind Tesco. SuperValu continues to build performance outside of its traditional base – with the areas are young families, where market share has increased by almost 2%, and Dublin, where sales have increased by 3.5% performing particularly strong for the retailer. Lidl is the second strongest growing retailer, with an uplift in sales of 5.9%. An increase in shopper loyalty is behind this, with shoppers returning to the store more frequently – resulting in an extra 780,000 trips for Lidl this period compared with last year.

Having previously reported a decline in sales, Aldi’s performance returned to form. Sales have increased by 1.3% and market share stands at 10.6% – just 0.2 percentage points behind Lidl.

Dunnes still on top as shoppers spend on brands and veggie options

 

The battle of the supermarkets remains as tight as ever as all major supermarkets experiencing sales growth over the last twelve weeks. Only 1% separates the top three, with Dunnes in the top spot with 23.2% of the market.

According to Kantar Worldpanel, Dunnes have successfully counteracted lower footfall with higher spending from its existing customers. This comes as shoppers are shopping around less but rather remaining loyal to a brand and spending more in one place. Dunnes are followed by Tesco on 22.7% and a sales increase of 4.8% and SuperValu is in third with 22.2%, with sales growth of 2.1%. Dublin yielded the strongest results for the retailer, with the supermarket managing to increase its market share in a region where it was traditionally underrepresented. Lidl and Aldi are on 10.5% and 10.3%, respectively, and Iceland, while also holds just 0.6% of the market is making gains in their frozen offering, helped in the main by new store openings. The chain which recently opened its 20th Irish branch increased its share of frozen food sales from 4.3% to 6.0% year on year.

According to the latest figures, which deal with the 12 weeks ending 28 January show continued growth for Irish supermarkets, with the growth of branded goods outpacing own brand labels for the first time in four years. Alcohol, baked goods, frozen food and toiletries were the best performers. Kantar Worldpanel’s David Berry saying the sales equated to nearly €50 million extra for retailers. “The recovery of branded sales began in late 2017 and has continued apace in the new year. Sales of brands are up 4% year on year as shoppers parted with an additional €49 million on their favourites during the past 12 weeks.

Consumers’ New Year health kicks were plain to see with spinach, berries and avocados continuing to prove popular. Shoppers’ are also showing an increasing interest in vegetarian and vegan lifestyles with sales of vegetarian options surge by 18%, translating as one in five shoppers picking up a vegetarian product.