Ireland’s Guide To Money And Living

Grocery sales down

Tesco is close to losing its position in the Irish supermarket sector with the latest figures from retail analysts, Kantar Worldpanel, indicating that its market share has fallen again while discounters Aldi and Lidl outperform the market.
The research shows that while the market as a whole is shrinking, Aldi and Lidl are bucking the trend, and are growing, with their market share increasing by 1.4 and 0.8 percentage points according to the figures. “Over the past three years Aldi and Lidl have captured a combined 3.8 share points from the competition, and have grown sales by 37 per cent in an overall grocery market which has grown by just 1 per cent,” Mr Berry said. “Conversely, Tesco and Dunnes have both experienced declines in market share and actual sales as the result of the pressure exerted by the increasingly competitive market place.”

Ireland’s second largest grocery player is now SuperValu, following their rebranding of 24 Superquinn stores, which sees them account for a little over 25 per cent of the total market, though Tesco remains at the top of the pile. “Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer’s position as a major player in the grocery market,” said Kantar Worldpanel’s commercial director David Berry. “SuperValu now accounts for 25.3 per cent of Irish shoppers’ grocery market spend, just 1.1 percentage points behind Tesco. Its sales have remained broadly in line with the market, which shows that it has been able to retain its market share while acquiring assets.”

February witnessed the weakest performance in the grocery sector since September 2011 with sales declining by 0.6 per cent. Falling inflation has been identified as one major cause – items such as vegetables and bread, for example, are now cheaper than they were last year.

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