Discounters on the increase in Ireland
New formats, including the Barry Group franchise Buy Lo, and discount retail warehouse, CheepCheep.ie, have appeared in the grocery sector.
Print16 August 2009
New formats of discount warehouse retailing have emerged in Ireland over the last two months. In addition, traditional discounters in the country jumped to 8.5% market share, according to data from TNS Worldpanel: Aldi growing by 20% and Lidl by 10% for the three months to 12 July.
Two new formats, including the Barry Group franchise Buy Lo which ShelfLife revealed in an exclusive ‘breaking news’ bulletin last month, have appeared. An online discount retail warehouse, CheepCheep.ie, also launched in May.
Cheep Cheep.ie, whose warehouse is based in Bray, Co Wicklow, is an internet-based discounter that allows customers to buy online and collect their purchases at the Bray site. The business, which informs shoppers its prices are “typically 50% cheaper than mainstream supermarkets,” was set up by Kevin Brennan and Nafisa Brennan, formerly owners of premium tea brand Orgapod.
Cheep Cheep.ie offers a broad range of ambient grocery and household products, including well-known Irish and international brands, organic and Fairtrade products. In addition to deeply discounted prices on common items, consumers can also benefit from special deals, or ‘Hot Buys, such as 24-tray 7Up for €6.99 and Calgonit All-in-1 dishwasher tablets 28-pack for €4.99.
According to Kevin Brennan, the online discounter is presently targeting only local trade and commuters. Marketing to date has been limited to local radio ads and leaflet drops, although there are plans to expand the operation into other territories. Brennan reports that growth to date is in line with the company’s plan.
Cheep Cheep.ie currently offers a ‘click and collect’ service but hopes to deliver too shortly. It is also looking to expand its range and stock more Irish products, and become a direct sales channel for Irish food companies. “Manufacturers and producers in Ireland can sell directly to the consumer through us, using us as a sales channel. We would be operating on a low margin and hopefully it would bring more products to the consumer at a better price,” said Brennan.
Buy Lo in Kildare meanwhile, operated by the Tougher group, sources all product from Barry’s and directs all interested suppliers to apply to the wholesaler. ShelfLife understands that listings are being limited for the present.
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