Boost for Irish retailers as consumers spend more

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Latest Kantar Worldpanel figures show discounters continue to gain while Tesco suffers drop in sales



2 September 2013

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The latest supermarket share figures from Kantar Worldpanel in Ireland, published today (Monday) for the 12 weeks ending 18 August, show a €30 million uplift in consumer spend as a result of the heat wave compared with the same period the previous year. David Berry, commercial director at Kantar Worldpanel, explains: "The good weather has clearly had a positive effect on the grocery market, with consumers spending more on traditional barbecue and picnic foods. Shoppers have spent an extra €2m on sausages, boosting sales by 12%. However, sales of frozen burgers continue to decline despite the BBQ weather, with shoppers increasingly likely to buy chilled burgers instead. Cooked meats, bagged salads and bread rolls have all seen double digit sales growth, helping overall grocery sales grow by 1.5%. Ice creams and cider have helped keep consumers refreshed with sales of both growing by over 30%."

The results show that Aldi and Lidl continue to post impressive growth of 26.6% and 14.8% respectively. This means the discounters’ share of the Irish market stands at 15.1%. SuperValu has performed strongly over the summer months, attracting new shoppers and seeing them spend 60 cent more on each trip. SuperValu’s share has increased from 19.5% last year to 19.8% with sales growth of 3.1%.

Tesco has seen a drop in sales compared with a strong performance last year, with fewer customers spending less in store.

Berry comments: "Interestingly, there has been no negative effect for Superquinn following the recent announcement that the stores will be renamed as SuperValu, with sales and market share remaining in line with last year."

The coming weeks will be important for each of the retailers as they look to win new customers during the important back to school period and retain them as the winter season approaches. Kantar also released its update on the rate of inflation which has increased. Grocery inflation stands at 5.5%* for the 12 week period ending 18 August 2013, up from the 4.6% seen last period.



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