Dunnes Stores has retained its position as Ireland’s largest grocer, holding a 22.4% market share in the latest 12 weeks, research shows.
The latest grocery market share figures from Kantar in Ireland indicate that the retailer was bolstered by the ‘largest influx of new shoppers this period, who contributed an additional €56.8 million to its overall performance.’
SuperValu holds a 21.8% share of the market, and Tesco follows closely behind, at 21.7%, meaning that there is now just a 0.1 percentage point between the retailers.
Lidl and Aldi account for 13.0% and 12.1% of the market, respectively.
Inflation Impact
Overall, take-home grocery figures for Ireland show that sales fell by 7.2% during the period.
Against a complex backdrop of global supply chain issues, grocery price inflation has hit 4.7% this period – its highest level since September 2013.
“The impact of grocery inflation is being felt widely across store shelves, and consumers will be noticing the effects on their budgets. Foods like cooked poultry, bread, pasta and butter have seen some of the biggest jumps,” commented Emer Healy, senior retail analyst at Kantar.
“The average household is facing a €330 price increase on their annual grocery bill, and 23% of households say they are now struggling to make ends meet when it comes to their weekly food shop. Retailers are responding to the rising price of goods, focusing their efforts on offering everyday low prices for shoppers.”
Sales Decline
According to Kantar, for the first time since the pandemic began, sales are in decline by 5.2%, compared to two years ago, as the period now includes the start of the first lockdown, when only essential shops were allowed to open.
“The pandemic might no longer be the first thing on shoppers’ minds, but we’re still seeing its effects on the grocery market, as life gets back to normal. The number of supermarket trips made each month has continued to fall, with shoppers making 3.5 fewer visits, on average, than this time last year, when Covid-19 restrictions were much tighter,” Healy said.
“The average spend per buyer has also fallen significantly, by €144, as consumers eat more meals out of the home. On top of that, the types of items we’re buying have changed, too.
“Sales of instant hot snacks and frozen pizzas have grown by 9% and 4.3%, respectively, over the last four weeks, as shoppers turn to quick and easy meals, now that many of us are back in the office and juggling school runs again.”
Online Shopping Growth
The online market has continued to grow over the latest four-week period, with sales boosted by 3.9%, as shoppers spent an additional €2 million.
The channel’s market share is now 3.3 percentage points higher than during the same 52-week period in 2019.
“Many people became more reliant on online shopping over the course of the pandemic, and this has fitted in quite naturally with our busier schedules post-Covid. In the context of rising prices, it also allows consumers to be more considerate as they add items to their basket,” Healy added.
“While people are buying less in stores, the average number of items being purchased online is actually on the rise, growing by 3.2% year on year.”
© 2022 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. For more retail news, click here. Click sign up to subscribe to Checkout.
