Discounters continue to gain share in Ireland, with Lidl and Aldi posting strong growth over the last quarter, as the overall market has continued to slow, according to the latest Kantar Worldpanel figures.
Lidl saw its sales rise 7% in the 12 weeks to 10 July, taking its share of Ireland’s grocery market to 6.2%.
The growth meant Lidl had a bigger share of the market than local grocer Superquinn for the first time and made the German giant the fourth-largest retailer in Ireland.
Aldi, meanwhile, posted a 26% rise in sales, which took its share of the market to 4.4%.
However, the growth in the overall market slowed, with sales up 0.5%, compared to 0.9% in June.
Tesco, the largest retailer in Ireland, grew ahead of the market, with sales up 1.5%. The UK retailer increased its share of the market from 27.6% a year ago to 27.8%.
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By GlobalDataHowever, the potential change of ownership at Superquinn would bring Musgrave Group’s market share closer to Tesco.
Musgrave has agreed to buy Superquinn, which moved into receivership last week. Superquinn directors mounted a legal challenge to the move last week and the sale of the business to Musgrave remains subject to regulatory approval.
However, Kantar said the acquisition would make Musgrave “a serious contender for the top spot”.
Kantar commercial director David Berry added: “The potential acquisition would particularly affect the competitive Dublin area. Musgrave accounts for just 10% of grocery sales in Dublin but with the addition of Superquinn it would hold 23% of sales.
“The possible acquisition would create a fresh food powerhouse with the combined group achieving 31.5% share of the fresh and chilled sector across Ireland – seven points ahead of Tesco. The challenge for the retailer would be to halt Superquinn’s decline by convincing shoppers that it is the place to shop for both quality and value for money.”