Discount retailers Aldi and Lidl are gaining market share in Ireland, according to the latest figures from analysts at Kantar Worldpanel.
Aldi’s sales increased by 27.5% year-on-year during the 12 weeks to 17 April, Kantar said today (9 May), against an Irish grocery market that grew by 1.1% over the period.
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Lidl also outperformed the market, with its sales up 8.3%. Kantar noted that, in February, Lidl’s sales were growing at 3%, only slightly ahead of the market.
The increased sales meant that Aldi enjoyed a 4.2% share of the market in Ireland, up from 3.3%. Lidl’s market share grew from 5.7% to 6.1%.
David Berry, Kantar Worldpanel Ireland’s commercial director, said consumers were being attracted by Aldi and Lidl’s fresh food.
“Aldi and Lidl’s growth seems to be driven by customers’ increasing trust in their fresh food offering,” Berry said. “Both retailers have seen phenomenal growth of 45% for Aldi and 37% for Lidl over the last three months, in their fresh meat, poultry and fish categories.”
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By GlobalDataHowever, Berry said the discounters needed to leverage their fresh food lines to get consumers to shop at their stores more often.
“Both retailers want to continue to gain market share they will have to entice more customers to their stores on a more regular basis. Currently shoppers visit Tesco and Dunnes on average more than once a week,” Berry explained. “In comparison, the average shopper only visits an Aldi or Lidl every other week – fresh food provides these two retailers with an incentive for customers to shop there more regularly.”
Market leader Tesco saw its sales in Ireland rise by 1.6% during the period. The increase took its market share from 26.9% to 27.1%.
Nearest rival Dunnes grew its sales by 0.8% but, with growth behind the market, saw its market share drop from 23.7% to 23.6%.
SuperValu, Ireland’s number three grocer, saw its sales dip 0.2%. The retailer’s market share fell from 19.8% a year ago to 19.5%.
Superquinn saw its sales fall 5%, leaving it with a market share of 6.4%, down from 6.9% a year earlier.
