Aldi and Lidl continue to set the pace

Kantar Worldpanel's David Berry says Aldi is succeeding in capturing more spend from its shoppers, while Lidl's growth is also likely to continue in the coming months due to new store openings



15 April 2014

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The latest supermarket share figures from Kantar Worldpanel in Ireland, published for the 12 weeks ending 30 March, show strong sales growth for both Aldi and Lidl with respective growth rates of 21.9% and 11.1%.

David Berry, commercial director at Kantar Worldpanel, explains: "Aldi has maintained a growth rate of over 20% throughout 2014. This has boosted its market share from 6.4% last year to a record 7.9%. Aldi has capitalised by capturing more spend from its shoppers. Each shopping trip has grown by an average €2 per trip with two additional items being added to baskets.

"Lidl has also performed strongly with double digit sales growth for the fourth successive month. It posted a market share of 7.5% – just below its record 7.7% seen last August. This growth is likely to continue in the coming months thanks to a number of recent new store openings."

Meanwhile, market conditions remain tough for both Tesco and Dunnes which have experienced sales declines of 6.6% and 3.9% respectively. Tesco has continued to attract high numbers of customers through its doors, with the number of shopping trips falling by just 1%. Its main challenge is that these trips are shrinking in size, with customers picking up one item less per shop.

Dunnes’ share of the market dipped below 22% for the first time in six months, as 40,000 fewer shoppers have visited the retailer this year. SuperValu performed slightly behind the market, with sales dipping by 1.6%, leading to a fall in market share of 0.1 percentage points, to 25.2%.

Commenting on the results, Martin Kelleher, managing director of SuperValu said: "Today’s figures demonstrate that SuperValu is bringing real competition to the marketplace by driving down the average cost of the grocery basket. Since renaming the 24 Superquinn stores, we have seen an increase in footfall in store due to the better value available in store, primarily due to the popularity of the SuperValu own-brand range. As shoppers have taken advantage of the excellent value on offer in terms of price reductions, promotions and own-brand, the average cost of a grocery basket has been driven down. We expect this trend to continue as we are forecasting double digit growth in own-brand sales across the SuperValu network for the rest of the year."



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