Grocery Market Share Ireland - Value tops premium as shoppers cut back
The latest grocery market figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 23 January 2011, show that value remains at the top of shoppers’ agenda.
The Irish grocery market continued to grow at 1.7% in the latest period slightly behind the previous period (2.1%), while inflation also remained ahead of the market growth rate as shoppers traded down to cheaper products.
A drop in household income, following budget cuts and new taxes taking effect in January, meant many customers cut back again on their groceries after the festive season. With an increased focus on value, own label goods performed well this period with growth of 4.5%, while branded goods remained flat at 0.4%.
David Berry, Commercial Director at Kantar Worldpanel, comments: “As fresh cuts squeezed shoppers’ wallets this period we’ve seen a mixed performance from the retailers. As you would expect in these austere times the Discounters have continued to prosper with Aldi posting excellent sales growth of 23.6%. Lidl has also grown ahead of the market (6.3%), increasing its share from 5.2% in January 2010 to 5.4%, but the gap which had opened up between Aldi and Lidl’s rate of growth remains.”
With a strong own label offering Tesco recorded respectable growth and outperformed the market for the 17th period in succession. Growth of 5.9% lifted Tesco’s share by 1.1 percentage points to 27.4% - widening its lead over Dunnes Stores from 2.4 points last year to a gap of 4.1 points this quarter.
Boosted by strong Christmas sales Supervalu continued to grow ahead of the market at 2.5% - keeping its share above 20%.
David Berry, continues: “Outside these four retailers trading conditions remained difficult for the Irish grocery market. Dunnes Stores saw a slight drop in sales (0.7%) while Superquinn continued to suffer as shoppers sought value, with sales declining by 8.3%. As shoppers tighten their belts it will be important for the traditional premium stores to balance their offering with value products.”
An update on inflation
Grocery inflation remains at 3.9% for the 12 week ending period 23 January 2011.*
*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.