Discount stores leave multiples lagging behind

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Latest figures from Kantar Worldpanel show Aldi and Lidl have combined market share of 13.6%

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28 May 2013

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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. 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.

David Berry, commercial director at Kantar Worldpanel, said: "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."

Tesco and Dunnes saw 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%. Berry added: "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% for the 12 week period ending 12 May 2013, down from the 5.3% seen last period.

Commenting on the results, Martin Kelleher, managing director, SuperValu, said: "As the best performing grocery retailer outside the discounters, we are pleased with the latest figures from Kantar which is evidence of the work we are doing with our retailers. We have achieved this by listening to our consumers and offering them quality Irish produce at great value. Our own-brand range is a great example of this, with shoppers happy to switch brands to save on price but without sacrificing on quality. Our promotional calendar, which sees around 300 promotions on offer every week, has also proved to be a key sales driver with our customers.

"SuperValu, which has 196 stores nationwide, is committed to local employment and supporting local suppliers. 75% of everything on SuperValu’s shelves is sourced or produced in Ireland, contributing over €1.6 billion to the Irish economy and helping to sustain almost 30,000 Irish jobs in the farm, food and retail sector."

 

 

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