Grocery Market Share Ireland - Grocery Market Returns To Growth For First Time Since April

The latest supermarket share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 28 October 2012, show that the Irish grocery market has grown by 0.1% – the first increase recorded since the Easter boost in April but still a long way behind the inflation rate of 4.1%.

David Berry, commercial director at Kantar Worldpanel, explains: “While the growth seen this month is a good sign for the grocery market, we are not out of the woods just yet and many grocery retailers are still struggling. Shoppers are continuing to watch their purse strings, buying fewer groceries per trip but shopping more often. They are also spreading their spend across a broader spectrum of stores, meaning that it is a challenge for the grocers to drive sales growth.

“Aldi continues to be the standout performer; it has posted growth of over 30% and improved its share of the market from 4.7% last year to a record high of 6.1%. A key feature of its success is its ability to bring in new shoppers, with 70,000 more through the door this year, while also encouraging them to come back more often.”

Lidl and Tesco have also posted solid results, both growing ahead of the market and boosting their respective shares by 0.2 and 0.6 percentage points. Both retailers have also benefitted from the ‘shop more, spend less’ trend which has helped attract new customers to their stores.

Dunnes has reversed its recent decline in fortunes with an increase in market share to 22.4%, compared with 21.6% last month. This coincides with its October initiative which gave shoppers €5 back for every €50 spent in store. With initial results suggesting that shoppers have responded well to this deal, it will be interesting to see how each of the competing retailers will respond in the lead up to the Christmas period.

An update on inflation

Grocery inflation stands at 4.1%* for the 12 week period ending 28th October 2012, up from 2.6% in the previous period and the highest since the 4.4% seen in August 2011.

*This figure is based on over 30,000 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.

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