FDBusiness.com

Rising Prices Drive Irish Grocery Sales Growth

 Breaking News
  • Britvic Delivers Strong First Half Britvic, the UK-based soft drinks group, increased revenue by 4.9% to £769.2 million – by 1.9% on an organic basis – for the 28 weeks ended 14 April 2019, compared to the corresponding period in the previous year. Adjusted EBIT increased 4.0%, on a reported basis, to £83.7 million, whilst organic adjusted EBIT increased 5.0%. [...]...
  • Carlsberg and Liverpool FC Extend Partnership to 31 Seasons Carlsberg and Liverpool Football Club have agreed a five-year extension to their partnership – securing Carlsberg’s role as Official Beer until the end of the 2023-24 season. The new deal builds on the longest standing partnership in the Premier League, which began in 1992 and has seen Carlsberg sponsor the team ever since. As a [...]...
  • Packaging Innovations and Luxury Packaging London 2019 Set to Return For 10th Year With Biggest Show Yet As Packaging Innovations and Luxury Packaging London 2019 prepares to return to the Olympia on 11 & 12 September, James Drake-Brockman, Divisional Director of Easyfairs’ Packaging Portfolio, discusses plans for the show. Why should the event be in all packaging professionals’ calendars? Packaging Innovations and Luxury Packaging London 2019 provides packaging professionals with the perfect platform to network with peers [...]...
  • Diageo Launches New Super-premium Gin Diageo is introducing a new super-premium Italian gin, Villa Ascenti. The launch comes at a time when the super-premium and ultra-premium gin categories are the fastest growing segment within gin in Europe. Villa Ascenti will initially be available in 14 European countries. A new €420,000 (£360,000) distillery has been built on the site of the brand [...]...
  • European Commission Proposes to Increase Price Transparency in the Food Chain Having banned unfair trading practices and improved producer co-operation, the European Commission has presented the third element to improve fairness in the food supply chain by introducing greater transparency in the way prices are reported throughout the chain. The European Commission has tabled a proposal that will make available crucial information on how prices are determined [...]...

Rising Prices Drive Irish Grocery Sales Growth

Rising Prices Drive Irish Grocery Sales Growth
March 15
14:08 2019

The latest figures from Kantar Worldpanel show the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, putting the sector on a solid footing as the UK finalises preparations to leave the EU. After a prolonged period of deflation, an upward trajectory in grocery prices is making a significant contribution to growth.

Douglas Faughnan, consumer insight director at Kantar Worldpanel, comments: “Grocery prices rose by a further 1.5% in the most recent 12 weeks, marking the first time an increase has been recorded for four consecutive periods since February 2017. Prior to this a number of factors had contributed to the lengthy spell of deflation, not least the intense price competition between retailers which has driven down costs for consumers and has been to the benefit of Irish shoppers overall. The continued growth of Aldi and Lidl who now account for 11.2% and 11% of the market respectively has encouraged the three traditional retailers to bolster their value credentials by launching promotions such as Tesco’s The 800 campaign, Dunnes’ Everyday Savers and SuperValu’s Fill Your Trolley.

Douglas Faughnan, consumer insight director at Kantar Worldpanel.

“Meanwhile, a stronger euro to sterling exchange rate has made British imported goods and ingredients cheaper, allowing retailers to pass some of those savings on to Irish consumers. However, with prices already rising as Britain’s exit from the EU draws near, increases are likely to continue for the rest of the year. With more than €3.5 billion in food imports from the UK, the currency fluctuation can have a substantial impact on grocery prices in Ireland.”

Douglas Faughnan continues: “While branded sales have remained resilient despite higher prices, growing at 3% and accounting for 47.3% of overall sales, continued inflation may drive Irish consumers to trade down to cheaper own label ranges which are already growing at 4% in the latest 12 weeks.”

Price growth will likely also affect the promotional landscape. At present 30.2% of grocery sales are on promotion, though this has been in gradual decline over the past five years. An extended period of inflation may see Irish shoppers seeking more value by preferring to buy more on promotion.

Douglas Faughnan continues: “Shoppers may opt to save money by moving more of their spend towards the retailers they perceive as offering better value. Each of the five major supermarkets played host to at least two-thirds of the population in the past 12 weeks, demonstrating that Irish shoppers are already prepared to shop around for the best deals. Retaining the loyalty of their existing shoppers will be a key priority for retailers in the face of increased price pressure.”

Following a strong festive period, both Aldi and Lidl continued their impressive start to the year, growing sales by 10.5% and 6.0% respectively. Douglas Faughnan continues: “This marks the second consecutive period in which Aldi achieved double digit sales growth, a feat it has not achieved since March 2015. Meanwhile, Lidl’s growth of 6.0% is the highest for the retailer since May 2016.

“For the seventh consecutive period Dunnes was Ireland’s largest retailer, posting sales growth of 3.8%. While both Tesco and SuperValu saw their overall market shares decline, the pair did enjoy positive sales growth of 1.1% and 0.8%.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
  • June 25, 2019BevExpo 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements