Aldi, Lidl continue market share growth in Ireland

Aldi, Lidl continue market share growth in Ireland

Discounters Aldi and Lidl are continuing their march in the Irish grocery sector, delivering double-digit growth in a declining market.

According to the latest data from Kantar Worldpanel, Aldi and Lidl grew market share in Ireland by 1.4 percentage points and 0.8 points respectively in the 12 weeks to 2 March. Aldi accounted for 7.5% of Irish grocery sales. Lidl's market share was 7%.

The discount grocers have collectively grown their sales by 37% over the past three years, stealing market share from established rivals, Kantar revealed.

"Despite the overall grocery market declining for the fifth successive month, Aldi and Lidl continue to impress," David Berry, commercial director at Kantar Worldpanel, observed.

In contrast, Tesco, the largest grocer in Ireland, and Dunnes both experienced declining market share and actual sales figures. Meanwhile, SuperValu's recent acquisition of a number of Superquinn stores, which it subsequently rebranded, meant that the retailer became Ireland's second-largest supermarket operator by sales in the period.

"Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer's position as a major player in the grocery market.  SuperValu now accounts for 25.3% of Irish shoppers' grocery market spend, just 1.1 percentage points behind Tesco," Berry said.

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Superquinn rebrand makes SuperValu Ireland's second supermarket...
...but challenges remain for all major players as Aldi and Lidl forge ahead
 
The latest supermarket share figures from Kantar Worldpanel in Ireland, published today for the 12 weeks ending 2 March, show that SuperValu has become Ireland's second largest grocer following the rebrand of Superquinn's stores on 13 February.
 
David Berry, commercial director at Kantar Worldpanel, explains: "Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer's position as a major player in the grocery market.  SuperValu now accounts for 25.3% of Irish shoppers' grocery market spend, just 1.1 percentage points behind Tesco.  Its sales have remained broadly in line with the market, which shows that it has been able to retain its market share while acquiring assets.  Now, the main challenge for SuperValu is to convince previously loyal Superquinn shoppers of the merits of the SuperValu brand, and ultimately hold onto their custom.
 
"Despite the overall grocery market declining for the fifth successive month, Aldi and Lidl continue to impress.  Both retailers are delivering double digit sales growth, and have increased their market shares by 1.4 and 0.8 percentage points respectively.  Over the past three years Aldi and Lidl have captured a combined 3.8 share points from the competition, and have grown sales by 37% in an overall grocery market which has grown by just 1%.  Conversely, Tesco and Dunnes have both experienced declines in market share and actual sales as the result of the pressure exerted by the increasingly competitive market place."
 
February saw the grocery market's weakest performance since September 2011, with sales declining by 0.6%.  Falling inflation has played a significant part in this as vegetables and bread, two important staple items, are now cheaper than they were last year.

Original source: Kantar Worldpanel