Grocery Market Share Ireland - Grocery market battles snow, inflation and cuts
The latest grocery market figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 26 December 2010, show mixed fortunes for the retailers over the festive period.
The Irish grocery market remained in growth for the latest period at 2.1%, slightly ahead of the previous period (1.6%). With inflation falling to 3.9% from a previous high of 4.2%, fewer consumers traded down in December compared to November – keeping the market in growth.
However, there were mixed fortunes for the retailers. Tesco continued to be the main beneficiary of growth in the market, increasing its share by over one point, to 27.2%, compared to last Christmas. Supervalu was the most improved performer over the festive season, growing ahead of the market at 3% for the first time in nine months and increasing its market share to 19.9%.
David Berry, Commercial Director at Kantar Worldpanel, comments: “Supervalu performed well over the festive season and this is reflected in the strong performance in the final four weeks before Christmas. Supervalu may have benefited from its local stores as the adverse weather conditions encouraged many people to shop locally rather than risk getting stuck further afield.”
There were contrasting performances for the Discounters this Christmas. Aldi continued to post excellent growth at 22.9%, increasing its sales by €15m with strong sales across the alcohol, ambient food and fresh and chilled sectors. Conversely Lidl’s growth slowed from 9.4% in the last period to 6.7% in the run up to Christmas.
Premium retailer Superquinn had a less prosperous Christmas than others, recording a dip in its market share from 6.4% to 6.1%.
David Berry explains: “Traditionally shoppers trade up to premium ranges in the run up to Christmas and Superquinn would usually benefit from this trend. However, household incomes in Ireland were increasingly squeezed towards the end of last year, which impacted on Superquinn’s sales at Christmas.”
This move away from festive premiumisation was also echoed in the battle between branded and own label products as shoppers continued to prioritise value for money at Christmas. Sales of branded products are usually boosted at Christmas but this trend was reversed in December with own label ranges growing in value by 5% and branded lines remaining flat.
An update on inflation
Grocery inflation is at 3.9% for the 12 week ending period 26 December 2010.*
*This figure is based on over 75,000 identical products compared year-on-year in the proportions purchased by Irish shoppers and therefore represents the most authoritative figure currently available. It is a ‘pure’ inflation measure in that shopping behaviour is held constant between the two comparison periods – shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers.