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strong growth for discounters

Kantar research show Irish grocery market decline

New research from Kantar Worldpanel shows the biggest decline in the Irish grocery market since 2010, with strong growth for hard discounters. The latest figures from Kantar show the value of the Irish grocery market has fallen by 0.9 per cent over the past year.

Aldi and Lidl accounted for a combined market share of 12.4 per cent in the 12-week period ending 5 August 2012, according to the latest data from Kantar Worldpanel. This is up from 12.2 per cent in the last 12-week period, and from 11 per cent for the same period last year.

According to David Berry, commercial director at Kantar, the drop in the value of the market is a consequence of increased focus being placed on value for money by consumers, and a more ‘selective’ approach to shopping.

Tesco's Irish arm, which hit a new market share high of 28.8 per cent in the period (up from 28.7 per cent in the previous period, and 27.7 per cent in the same period last year), is benefiting from this new ‘little and often’ approach to shopping, and has seen sales growth of 3 per cent since last year.

“The economic imperative to reduce waste has led to an extra 3.9 million shopping trips over the latest quarter when compared to last year, although the challenge for the market is that each trip has reduced in value by over €1,” said Berry.

Dunnes Stores, Ireland's domestic supermarket chain, stands at 21.6 per cent market share, with SuperValu on 19.6 per cent. Superquinn, purchased this year by the Musgrave Group, stands on 5.5 per cent, the same market share it has held for three months now, and Berry believes the retailer, which was named Best Multiple/Group Retailer at the Checkout Best In Fresh Awards last month, has done well to retain its share in the current market conditions.

“Superquinn has worked hard to hold on to its share, it’s really focusing on what its traditional strengths are, and has held its ground in a difficult market,” said Berry.

Source: www.esmmagazine.com

Publication date: 8/22/2012


 


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