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Supermarket Price Inflation Averages 2.8%

/ 29th July 2019 /
Nick Mulcahy

The latest grocery market share figures from Kantar in Ireland, for the 12 weeks ending 14 July 2019, show the overall market is growing by 2.7% year on year

Dunnes Stores is the only one of the three traditional retailers to record annual growth this period, with sales up 6.3%.

Douglas Faughnan, consumer insight director at Kantar, commented: “Shoppers swayed towards shorter and more frequent grocery trips during last year’s good weather to the benefit of Tesco and SuperValu, which typically boast higher levels of shopper frequency. Every silver lining has a cloud, and both grocers were always going to face an uphill battle to replicate that performance this year.

“The retailers have come out fighting in response. Tesco recently reintroduced its voucher campaign offering €10 off every €50 spent, and will be hoping a renewed focus on this type of promotion will help it capture a greater share of high value trips and move back into growth.  The average value of a shop at Tesco is currently €24, behind Aldi on €27 and some way off Dunnes, which offers a similar voucher deal, on €42.

“Twelve months ago Dunnes was the third largest supermarket in Ireland.  Thanks to an additional 65,000 customers in the latest 12 weeks, the retailer has retained top spot for the eleventh consecutive period. The retailer typically performs strongest in the second half of the year and the run up to Christmas so has a solid base as we move towards its core trading season.”

In Association with

Faughnan added: “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.”

Aldi announced another two fresh produce-focused concept store openings in Ireland this month – known as Project Fresh – underlining its commitment to the category.  Sales at the retailer are up 12.8% on last year, with spend on fresh products typically outperforming overall growth.

Giles Hurley, CEO Aldi UK and Ireland, said: “Our Swap & Save advertising campaign (pictured) is clearly resonating, reminding shoppers about the saving that can be made by swapping their weekly shop to Aldi.”

According to Kantar, grocery market inflation stands at 2.8% for the 12 week period ending 14 July 2019. This figure is based on over 30,000 identical products compared year-on-year in the proportions purchased by Irish shoppers and therefore represents the most authoritative figure currently available.

Kantar monitors the household grocery purchasing habits of 5,000 demographically representative households in the Republic of Ireland. All data discussed in the above announcement is based on the value of items being bought by these consumers.

Retailer growth figures reported by Kantar relate to overall take home sales, and so include the impact of store openings or closures.  Like-for-like sales change is not measured or reported.

 

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