• Kantar cautious after 0.1% sales increase
  • Volumes down
  • Aldi "stand-out" performer 

Ireland's grocery sales have increased in the last three months, Kantar Worldpanel has revealed, although the analyst firm remains cautious about the sector's prospects.

Sales inched up 0.1% in the 12 weeks to 28 October, Kantar said today (12 November). However, grocery inflation in Ireland stands at 4.1%, indicating volumes fell during the period.

Kantar commercial director David Berry said the increase in sales was a "good sign" but insisted the sector was "not out of the woods just yet".

He said: "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, Berry said, "continues to be the stand-out performer". The German discounter's Irish sales increased 30% in the period, with its share of the market up from 4.7% a year ago to a record 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," Berry said.

Aldi's discount rival Lidl upped its share of the market from 6.3% to 6.5%. Market leader Tesco increased its share from 27.7% to 28.3%.

Dunnes, Tesco's nearest rival, saw its market share fall year-on-year from 23.9% to 22.4%, although Kantar said there had been some improvement from last month's figures.

SuperValu's market share was flat year-on-year. at 19.5%

Show the press release

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. 

Original source: Kantar Worldpanel Ireland