SuperValu reclaims number one spot: Kantar Worldpanel
SuperValu and Tesco respond to discounters by expanding own-label ranges while brands still dominate at Dunnes Stores.
Print10 April 2017
SuperValu has once more regained the title of Ireland’s largest grocer, having been pipped to the post by Dunnes Stores for the past two months. This is according to the latest figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 26 March 2017.
“The battle to attract shoppers remains fierce as ever as SuperValu makes its way back to the number one spot,” said David Berry, director at Kantar Worldpanel. “After two consecutive months at the top, Dunnes was unable to remain Ireland’s largest supermarket for a third month with SuperValu finishing 0.3 percentage points ahead of the retailer.”
Deflation
The figures also show the Irish grocery market has slipped into deflation for the first time in almost two years, dropping 0.7 percentage points month-on-month to -0.2%.
“Only now are we starting to feel the effect of the weakened pound following the EU referendum as the price of British imports drops,” Berry said. “For the first time since May 2015, grocery prices are falling so consumers are likely to have a little extra cash to hand, though this doesn’t necessary mean they’ll spend more in store. Many will see the break from inflation as a chance to cut down their grocery costs and pocket the savings instead.”
Easter impact
The latest figures reflect the impact of Easter on consumers and retailers alike. With the Easter weekend not until the middle of April this year, the holiday falls outside the latest 12 weeks while it was within the comparable period last year. As a result overall growth in the market fell to 0.7% – significantly below the level during the same period in 2016, demonstrating Easter’s significant boost to the market. The recent return to deflation has also contributed to the slowing of growth.
Own-label expansion
One of the main trends within the Irish grocery market this year is shoppers’ move towards own-label, with these goods now accounting for 54% of total grocery spend – up 6% in the past four years. Discount retailers Aldi and Lidl are a major contributing factor; their stock is predominantly own-label so they have driven this growth, with shoppers now also more accustomed to seeing own-label ranges on shelves.
“SuperValu and Tesco have both responded and expanded their own-label ranges,” Berry said. “The retailers see this as a real opportunity for growth, with own-label lines offering them the chance to set themselves apart from the rest.
“However brands are still dominating in Dunnes Stores, with own-label accounting for just 38% of sales this year – up only 1% since 2013, much lower than its competitors.”
Growth at Dunnes and discounters
Despite losing market share, Dunnes still has reason to celebrate. Sales grew by 3.2% year-on-year – the 30th consecutive period of growth for the retailer. Lidl’s success continues too as the retailer experiences a 3.7% increase in sales. Shoppers visited the store once more over the past 12 weeks, compared to the same period last year. Aldi remains Ireland’s fasting growing retailer with sales growing by 5.0%. The retailer increased its market share to 11.3%, closing the gap with its closest rival Lidl to just 0.1%.
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