Discounters press ahead as market slows

While overall market growth dropped again in July, the discounters' sales continue to rise

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Overall grocery market growth dropped further in July to just 0.5% compared with the 0.9% growth in June, according to the latest figures from Kantar Worldpanel for the 12 weeks ending 10 July 2011.

However the German discounters Aldi and Lidl recorded sales growth of 26% and 7% respectively. Tesco also grew slightly ahead of the market at 1.5%, increasing its share from 27.6% a year ago to 27.8%. SuperValu performed slightly behind the market with a 1.2% decline, decreasing its market share from 20.0% to 19.7%.

The prospective purchase of Superquinn by the Musgrave Group would see Musgrave capture 27.6% of the grocery market. 
This would push Musgrave’s combined share of the take home grocery market ahead of Dunnes, which has 23.0% share, and into competition with Tesco (27.8% share).

David Berry, Kantar Worldpanel commercial director, said the acquisition  “would particularly affect the competitive Dublin area,” as Musgrave currently holds just 10% of grocery sales there but with the addition of Superquinn would hold 23% of sales.
He added that the deal would also “create a fresh food powerhouse, with the combined group achieving a 31.5% share of Ireland’s fresh and chilled sector – seven points ahead of Tesco”.

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