Tag: Grocery

Grocery Retail Market Shares

Aldi plan major US investment as Lidl open first US stores this week

Posted on | by Aisling Rafferty

German discount retailer Aldi have announced plans to invest $3.4bn (€3bn) in their US operations. The announcement comes as rival retailer Lidl open their first US stores this week.

Lidl will open nine stores in three states, Virginia, North & South Carolina later this week. The discounter has plans to open as many as 100 stores within the US by the summer of 2018.Lidl currently has 10,000 stores in 27 European countries.

Aldi on the other hand first came to the US market in 1976 opening its first store in Iowa.The brand currently operates 1,600 stores in the US, across 35 states.

Aldi announced this week that the $3.4 billion capital investment in the brand’s US operations which is expected to create up to 25,000 new jobs. The company says it will have 2,500 stores nationwide by 2022, which according to some experts would make it the third-largest supermarket chain in the US. The supermarket company also said it plans to spend an additional $1.6 billion to remodel 1,300 of its existing stores by 2020

According to Liz Ruggles, a company spokeswoman for Aldi, “We’re doing what we’ve been doing to ensure we’re the low-cost leader,” she said. “We’ll continue to maintain that.”

The expansion from the both discount retailers comes at an interesting time for the US grocery market. Food prices in the have seen significant deflation with prices dropping for 17 straight months, the longest pattern of deflation in more than 60 years.

Within the Irish Market, Lidl currently sits in fourth place with a grocery market share Lidl has of 11.4%. Aldi sit just 0.2 per cent behind this.

New research shows Irish consumers frustrated by in-store retail technology

Posted on | by Aisling Rafferty

 

Research by Fujitsu Ireland found that consumers expect more from their experience using technology in retail stores and many shoppers feel the in-store technology in Irish stores is either ‘quite often poor’ or ‘very poor’. Common complaints about the tech experience available include it being too slow (45%), unreliable (32%) and immobile (14%).

The research found that many shoppers say that they make use of in-store technology including digital enquiry points, stock-monitoring applications and mobile tablets, every time they shop (24%) and three in ten(29%) were less than impressed with the experience. Fifty per cent of Irish shoppers point to the ability to browse and buy in person as their primary reason for visiting a physical store. Following this, a quarter (27%) of shoppers mainly hit the high street for “in-store shopping experience”.

Close to a third (31%) of Irish shoppers believe that staff are not adequately trained on the technology they are expected to use. This statistic is in stark contrast to another section of the report in which a massive 91% of retail staff feel fully confident using the technology provided.

Despite this, the report highlights the potential for technology to enhance the instore experience of both consumers and staff. Half of consumers (49%) within the study stated that the available technology serves to speed up the service they receive. A third (34%) cite the ability to access additional product information as a bonus, while personalised offers and vouchers (25%) are also a draw for customers.

Well over half of shoppers within the study say that both the quality of in-store technology directly affects their loyalty to a particular retailer (59%) and that they have proactively chosen to buy an item from one store over another because they knew they would enjoy a better technology experience (57%). Interestingly (76%), say that a positive technology experience would increase the likelihood of them purchasing additional items.

Irish grocery market slips into deflation for first time in two years

Posted on | by Aisling Rafferty

The Irish grocery market has slipped into deflation for the first time since May 2015. Grocery prices dropped 0.7 percentage points month-on-month to -0.2% in the 12 weeks ending 26 March 2017, according to data published by Kantar Worldpanel. Kantar conducted a survey of 30,000 products stocked in supermarkets across Ireland and the results show that prices are trending downwards.

Bottled colas saw the biggest price cut in the 12 weeks with the cost of goods such as 2 litre bottles of Coca-Cola and Pepsi dropping by as much as 10%. Biscuits are another item also getting cheaper, falling by as much as 8% during the period, while frozen vegetables fell also fell by 8%. The price of coffee has also fallen, by up to 6% during the period. This decrease comes after a supply crunch saw prices shoot up.

Despite the overall trend leaning towards falling prices, certain areas and products saw substantial price jumps. The price of fresh fish skyrocketed during the period, increasing by 12% while tinned fish also rose in price by 4%. Herbal teas and packet soup also increased significantly by 8% each, and sugar rose by 5%.The average price of a bottle of wine also rose, up by 3 per cent in the latest survey.

 

SuperValu regain top spot in battle for biggest grocery retailer

Posted on | by Aisling Rafferty

SuperValu have regained the top spot in the battle for Ireland’s biggest grocery retailer. Dunnes Stores has held the spot for the previous two months but SuperValu finished with a market share of 22.6% ahead this month, preventing Dunnes (22.3%) from achieving three in a row.

Despite losing the top spot, Dunnes’ sales grew by 3.2% year-on-year marking the 30th consecutive period of growth for the retailer. Lidl’s success continues too as the retailer experiences a 3.7% increase in sales. Customers visited Lidl stores once more over the past 12 weeks, compared to the same period last year. Aldi retain their crown as Ireland’s fasting growing retailer with sales growing by 5.0%. The retailer increased its market share to 11.3%, closing the gap with its closest rival Lidl to just 0.1%.

Kantar’s latest figures also illustrate an emerging trend amongst consumers towards own label product. Own label goods now account for 54% of total grocery spend – up 6% in the past four years. Discount retailers Aldi and Lidl are responsible for driving the trend with the majority of their stock is made up of own-label so they have driven this growth, with shoppers now also more accustomed to seeing own-label ranges on shelves.

“SuperValu and Tesco have both responded and expanded their own-label ranges,” said David Berry, director at Kantar Worldpanel Berry “The retailers see this as a real opportunity for growth, with own-label lines offering them the chance to set themselves apart from the rest.

However well-known brands are still dominating in Dunnes Stores, with own-label accounting for just 38% of the retailer’s sales this year – up only 1% since 2013, much lower than its competitors.

Dunnes Stores retains top spot two months in a row in supermarket battle

Posted on | by Aisling Rafferty

Dunnes Stores has held its position as Ireland’s largest grocer for the second month in a row according to the latest supermarket share figures from Kantar Worldpanel in Ireland,The figures published today, contain data for the 12 weeks ending 26 February 2017.

Dunnes have encouraged shoppers to add more to their baskets, helping the retailer to maintain the title of Ireland’s largest supermarket this month. The grocer’s “Shop & Save” initiative is continuing to influence customers to spend more, with the average basket featuring an extra one and a half items – an additional €3 per trip and €25 million for the retailer in the past 12 weeks, compared to the previous 12 weeks. This is the first time the retailer has retained the top spot.

Sales at Dunnes grew by 4.6% and the retailer increased its market share to 22.9%, up from 22.5% last year. SuperValu remain an incredibly close second with a 22.6% share of the market.

SuperValu also convinced customers to spend more in their weekly trip with the average customer spending over €1 more per trip, causing sales to grow by 0.5% amounting to an extra €3 million for the grocery chain. Last month, Supervalu announced plans to open three new stores and refurbish a host of others. With the retailer will be expecting to experience a boost in sales later in the year.

Aldi’s and Lidl’s success is continuing, with sales rising by 5.3% and 4.1% respectively. Over the past twelve weeks Aldi managed to attract an additional 20,000 customers into its stores, while also encouraging them to visit more frequently. Lidl’s uplift in sales enabled the retailer to increase its share of the market to 10.6%.

Following three months of steady growth, Tesco sales dropped by 1.0% as eleven days of staff strikes led to disruption for the retailer. Despite the industrial action only affecting eight stores there has been a clear impact on the retailer’s performance, with market share falling by 0.9 percentage points to 21.7%.

For more Grocery Market Share data visit Kantar Worldpanel’s Dataviz

Grocery Salary Survey 2016

Posted on | by Aisling Rafferty

Excel Recruitment have been recruiting for the Irish Grocery Market for over 15 years. Our Grocery Team is comprised of former Grocery Managers who know the industry inside out. This guide was is designed to give our clients and candidates a guide as to the current market prices for the various roles within the Irish Grocery market.

If you would like to discuss any of our findings , need advice on your manpower, planning, or assistance with your recruitment needs please feel free to contact our Grocery team here.

Our past Retail Salary Survey covering aspects of Grocery, as well as Non-Food, Fashion and FMCG is available here. All Grocery Jobs with Excel Recruitment are available here.

2016 Grocery Salary Survey

SuperValu retain top spot in Supermarket spend

Posted on | by Aisling Rafferty

 

SuperValu have maintained their top spot as Ireland’s favourite Supermarket. The figures released by Kantar Worldwide show continued growth in the volume of sales in the Irish Grocery market, with a 2.5% increase year on year.

The period covering the 12 weeks to June 19th show SuperValu retain their top spot and all other grocery retailers seeing sales growth, with the exception of Tesco. It also indicated an average increase in spend of €27 per household this year.

12 week increase in sales

 

  • Dunnes Store – 5.9%
  • Lidl – 5.8%
  • Aldi – 3.6%

Tesco announce 2% pay increase

Posted on | by Aisling Rafferty

 

Tesco Ireland have announced a 2% pay increase for all staff which will be backdated to April 2015. A Tesco Ireland spokesperson said “Our business performance has not been what we would want it to be over the last few years with sales declining by -6.3% last year and -5.5% the year before.

Tesco have seen their ranking figures in decline as they continue to compete with SuperValu. They furthered ‘’We are awarding a 2% pay increase to all eligible colleagues backdated from the 1st April 2015. We have taken the decision to make this 2% pay award in recognition of the contribution our colleagues make in helping to serve Ireland’s shoppers a little better every day.’’

The Labour Court also made a recommendation that Tesco Ireland pay a bonus to staff, with the retailer saying it is not feasible at this time.

Source: http://www.checkout.ie/tesco-announces-2-pay-increase-backdated-to-april-2015/25467

Dunnes Stores to overtake Tesco in Grocery league

Posted on | by Aisling Rafferty

Dunnes Stores are just .1% behind Tesco in the Supermarket league according to the latest figure from Kantar Worldwide panel. While Tesco remain in second place with a 24.2% market share, Dunnes Stores are seeing the merits of their recent growth figures. Sales in the Irish Fashion & Food Retailer have grown by 7% year-on-year, commanding a new market share of 24.1% and an astounding €3million increase in revenue per week, across the quarter.

SuperValu continue to dominate at the top with a market share of 25% and an increase in sales of 3.7%. Growth amongst the discounters continues to accelerate. Both Lidl and Aldi sit on par each with an 8.1% market share. The figures accounted for the 12 weeks up until February 28th and is the third successive period where growth has been above 3% for Irish Grocery.

Noteworthy Trends

  • Sales of Fresh Fish increased by 13%
  • Fruit sales increased by 11%
  • Nuts increased by 17% versus last year

http://www.kantarworldpanel.com/ie/Press-Releases/Irish-grocery-market-continues-rapid-growth-in-2016

Aldi to expand premium range

Posted on | by Aisling Rafferty

Aldi will increase their premium range to facilitate the demands of current shoppers. The discount grocery retailer that has been experiencing a growth trajectory over the past 2 years will grow their product line by a further 150 to 1,500.

Aldi currently operates 132 stores across Ireland. They will expand their premium range by a third, capitalising on renewed consumer confidence. Sales of their ‘Specially Selected’ premium range had experienced sales growth of 24% in 2015.

Aldi will expand their total number of product lines by 150 to 1,500 which will include a one-third expansion in ‘Specially Selected’, Aldi’s premium line. The majority of these will be in yogurt drinks, wines, cooking sauces and deserts.