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Challenging Times Ahead for Traditional Multiple Retailers in Irish Grocery Market

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Challenging Times Ahead for Traditional Multiple Retailers in Irish Grocery Market

Challenging Times Ahead for Traditional Multiple Retailers in Irish Grocery Market
May 29
13:32 2013

The latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 12 May, show the market is becoming increasingly tough for the traditional multiple retailers as cash-strapped shoppers continue to flock to the discount stores.

David Berry, commercial director at Kantar Worldpanel, explains: “Aldi and Lidl have posted a combined record share of 13.6%, an increase of two percentage points from 11.6% last year. Both retailers continue to secure strong sales growth and win new customers. In the latest 12 weeks, Aldi has recruited an additional 100,000 shoppers and Lidl has added 62,000.

“In the face of continued price inflation and the onset of the Local Property Tax, shoppers continue to rein in their spending and look for the best value. Shopping across a range of different retailers is a big trend among consumers, who are making smaller, more frequent trips.”

As consumers look to save money and the discounters grow, Tesco and Dunnes have seen their sales decline, with market share falling from 28.4% to 27.6% for Tesco and 22.4% to 22.1% for Dunnes. SuperValu have again performed ahead of the market, holding onto 19.8% market share, while the recent improved performance of Superquinn continues with share maintained at 5.5%.

David Berry continues: “Online grocery sales have grown by 7.9% in the past year, compared with an annual in-store growth of just 0.2%. With shoppers spending an average of €62 per trip on the internet compared with €22 in-store, online presents a key opportunity for the traditional retailers.”

Grocery inflation stands at 5.0% for the 12 week period ending 12 May 2013, down from the 5.3% seen last period.

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