Growth in the Irish grocery market has slowed to below 1% as shoppers adopt more savvy shopping tactics, according to the latest figures from Kantar Worldpanel.
With a focus on thrift driving movements in the market, German discounters are reaping the benefits.
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Both Aldi and Lidl posted sales growth of 27% and 9% respectively for the 12 weeks ended 12 June, with the discount retailers outperforming the market. Aldi increased its share from 3.4% last year to 4.3% and Lidl improving on last year’s 5.7% share to secure 6.1% of the market.
Elsewhere, Dunnes and Tesco posted only slight sales growth, of 0.3% and 1.6% respectively. SuperValu posted negative sales growth of nearly 1% and dropped market share to 19.7% compared with 20% last year.
“Shoppers are buying fewer groceries to counter product-driven price inflation or ‘trading down’ to cheaper, essential products and switching to the discount retailers,” said David Berry of Kantar. “Without the World Cup to boost spending in the market we may see a real possibility of sales decline throughout the summer.”
He added: “It is a balancing act for retailers and brand owners. Providing consumers with a balanced offer which satisfies the need for value while also matching the needs of the family remains the key challenge for retailers and brand owners alike.”
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