Grocery Retail Market Shares

Dunnes remain top grocery retailer as Lidl and Aldi growth continues

Dunnes Stores retained top spot in the battle of the supermarkets with a 21.8% market share for the 12-week period ending July 14. This marks its 11th straight time on top of the grocery retail market. Douglas Faughnan, consumer insight director at Kantar, said Dunnes had attracted an additional 65,000 shoppers during the 12-week period with shoppers spending an average of €42 per visit, the most of any supermarket. He said Dunnes typically performs strongest in the second half of the year so these figures mean the retailer has “a solid base as we move towards its core trading season.”

In line with the overall market trend for increased spending by consumers, Lidl has seen the greatest increase of as shoppers bought more of its premium products. Douglas Faughnan explains: “While Lidl has witnessed a slight rise in overall shopper numbers, its success encouraging people to trade up to its premium own label and branded lines is a key reason behind its growth. Nearly 100,000 more shoppers bought Lidl’s top tier own label products this period compared to last, with an additional 13, 000 shoppers buying branded goods as well.” Lidl recently opened their 200th store and announced plans for 50 more stores around Ireland in the coming years.

Both Dunnes and Lidl have capitalised on a growing trend among shoppers who prefer to prepare meals from scratch. Inspired by the success of meal kit brands and convenience cookbooks, recent package deals on the constituent ingredients for home-cooked classics like spaghetti carbonara and bolognese have been popular at both retailers.

Aldi has seen the most dramatic growth of all the retailers during this period, with growth hitting double digits. Sales at the discounter were 12.8% higher than a year ago for a 12.5% share – both records for the German retailer. Lidl’s 5.4% year-on-year sales growth leaves it on 12.2%.

Dunnes still on top as shoppers spend on brands and veggie options

 

The battle of the supermarkets remains as tight as ever as all major supermarkets experiencing sales growth over the last twelve weeks. Only 1% separates the top three, with Dunnes in the top spot with 23.2% of the market.

According to Kantar Worldpanel, Dunnes have successfully counteracted lower footfall with higher spending from its existing customers. This comes as shoppers are shopping around less but rather remaining loyal to a brand and spending more in one place. Dunnes are followed by Tesco on 22.7% and a sales increase of 4.8% and SuperValu is in third with 22.2%, with sales growth of 2.1%. Dublin yielded the strongest results for the retailer, with the supermarket managing to increase its market share in a region where it was traditionally underrepresented. Lidl and Aldi are on 10.5% and 10.3%, respectively, and Iceland, while also holds just 0.6% of the market is making gains in their frozen offering, helped in the main by new store openings. The chain which recently opened its 20th Irish branch increased its share of frozen food sales from 4.3% to 6.0% year on year.

According to the latest figures, which deal with the 12 weeks ending 28 January show continued growth for Irish supermarkets, with the growth of branded goods outpacing own brand labels for the first time in four years. Alcohol, baked goods, frozen food and toiletries were the best performers. Kantar Worldpanel’s David Berry saying the sales equated to nearly €50 million extra for retailers. “The recovery of branded sales began in late 2017 and has continued apace in the new year. Sales of brands are up 4% year on year as shoppers parted with an additional €49 million on their favourites during the past 12 weeks.

Consumers’ New Year health kicks were plain to see with spinach, berries and avocados continuing to prove popular. Shoppers’ are also showing an increasing interest in vegetarian and vegan lifestyles with sales of vegetarian options surge by 18%, translating as one in five shoppers picking up a vegetarian product.

Tesco and Supervalu tied for top spot in grocery market share battle

SuperValu and Tesco are neck and neck in the fiercely fought battle to be Ireland’s largest supermarket as the crucial Christmas period fast approaches.

According to the latest figures published by Kantar Worldpanel both retail giants are neck and neck in 1st place with 22.0% of overall grocery market share. Both retailers have seen sales growth in the 12 weeks ending 8 October and this has contributed to the tie for top spot. Tesco has seen strong growth of 4.2%, an increase of 0.4 percentage points from this time last year. SuperValu has also seen an increase in sales up 0.5%. SuperValu and Tesco have both been successful in encouraging customers to spend more in store, SuperValu has seen consumers spend an additional 40 cents per basket on average while Tesco has encouraged its shoppers to increase their shop by €1.

Dunnes Stores sits in third place, 0.1 percentage points behind the top two. Lidl and Aldi both increasing sales year on year – up 3.0% and 2.8% respectively. Both posted small gains in their share of the market with Lidl’s market share increased to 11.7%, while Aldi’s rose by 0.1 percentage point to 11.6%.Deflation has eased and overall, supermarket sales are up 2.1% year on year. Dave Berry, director at Kantar Worldpanel says “With the festive period just around the corner – the time of year when sales spike and shoppers aren’t afraid to spend that little bit extra – the competition shows no signs of abating.”

In good news for brands, there has been a shift back towards branded goods after the recent trend for own-label goods. This time last year, the sales of branded items dropped by 0.5% compared to 2015. This trend seems to be reversing with sales up by 1.3%. According to Mr Berry, “At Christmas, shoppers tend to flock back to brands – partly for sentimental reasons and also as people are tempted to trade up at this time of year – so with the countdown to the festive season now well and truly underway, it’s likely we’ll see this trend continues into the new year.”

 

Grocery Retail Market Shares

Aldi plan major US investment as Lidl open first US stores this week

German discount retailer Aldi have announced plans to invest $3.4bn (€3bn) in their US operations. The announcement comes as rival retailer Lidl open their first US stores this week.

Lidl will open nine stores in three states, Virginia, North & South Carolina later this week. The discounter has plans to open as many as 100 stores within the US by the summer of 2018.Lidl currently has 10,000 stores in 27 European countries.

Aldi on the other hand first came to the US market in 1976 opening its first store in Iowa.The brand currently operates 1,600 stores in the US, across 35 states.

Aldi announced this week that the $3.4 billion capital investment in the brand’s US operations which is expected to create up to 25,000 new jobs. The company says it will have 2,500 stores nationwide by 2022, which according to some experts would make it the third-largest supermarket chain in the US. The supermarket company also said it plans to spend an additional $1.6 billion to remodel 1,300 of its existing stores by 2020

According to Liz Ruggles, a company spokeswoman for Aldi, “We’re doing what we’ve been doing to ensure we’re the low-cost leader,” she said. “We’ll continue to maintain that.”

The expansion from the both discount retailers comes at an interesting time for the US grocery market. Food prices in the have seen significant deflation with prices dropping for 17 straight months, the longest pattern of deflation in more than 60 years.

Within the Irish Market, Lidl currently sits in fourth place with a grocery market share Lidl has of 11.4%. Aldi sit just 0.2 per cent behind this.

Aldi open their 129th Irish store in Co Clare, creating 15 new jobs

 

Aldi open 129th Irish store in Co Clare, creating 15 new jobs.

Supermarket chain Aldi have opened their 129th Irish store in Co. Clare creating 15 new jobs. The latest branch of the German retailer, is based in Ennistymon, Co Clare.

Aldi opened their first Irish store 18 years ago with the first store opening in November 1999.

Speaking at the official opening on Friday, Declan Coyne Manager of the new Ennistymon store, said: “We are delighted to open our new Ennistymon store and look forward to welcoming many new customers from the local area.

“Aldi has grown in popularity across Ireland in recent years and we are pleased to make the quality, value and variety of our product ranges available to more people throughout Co. Clare.”

Aldi used the new store launch to highlight their commitment to Irish suppliers. In the last five years Aldi has recruited over 70 new Irish suppliers, meaning Aldi now partners with more than 175 Irish producers.

Over 50% of Aldi’s supplier spend is now with Irish suppliers, producers and manufacturers.

All of the retailer’s fresh meats, fresh poultry, eggs, bread, flour, and many of its teas, coffees, soft drinks, waters and snacks are provided by leading Irish suppliers.

Dunnes regain top spot but Aldi see the biggest growth in supermarket battle

Dunnes Stores has returned to first place in the supermarket wars with a market share of 22.7 %.

This is only the second time the retailer has taken the crown, having first held the position in November last year. Supervalu is in second place with the smallest of margins at 22.5% while Tesco follow in third with a 22.4% share in the market.

The latest share figures from Kantar Worldpanel cover the 12 weeks up to the end of January also have good news for Aldi seeing the strongest growth, seeing the German retailer overtake its main rival Lidl. Aldi continues to set the pace as the fastest growing retailer with year-on-year growth of 6.3% meaning its market share now stands at 10.6% compared to the 10.3% enjoyed by Lidl. There is hardly room for complacency, however as only 0.3 per cent separates the top three.

January has been difficult for retailers as growth following a record breaking Christmas proved difficult to maintain, further increasing competition. Retailers have also been affected by supply issues concerning fresh produce in recent weeks. The shortages have been caused by unusual bad weather in Southern Europe.

Southern Europe is currently suffering from continuing rainfall which has seen volume sales of courgettes, cauliflower and spinach drop by at least 20%. Other categories of fresh produce including lettuce and cabbages have also been affected, but to a lesser degree.

This competition means good news for consumers though as price inflation looks to remain low in 2017. Grocery prices are only 0.7% higher than they were this time last year – which means the average shopper is only spending an extra 17 cents per trip to the supermarket.

SuperValu regain top spot as Irish shoppers spend extra €92 million on Christmas groceries

Grocery sales are up 3.8% from last year as Irish shoppers spent an extra €92 million on their Christmas groceries at the end of 2016 according to the latest figures from Kantar Worldpanel.

The latest set of figures, which document the 12 weeks up to January 1st, show Supervalu regaining top spot from Dunnes Stores as the Republic’s largest supermarket, with a market share of 22.8%.

The Kantar figures show Dunnes returning to second place by the smallest of margins, with a market share of 22.7%. The retailer, despite the small drop, continued to perform well with sales for the Christmas period almost 5% higher than in 2015. The average spend per trip by Dunnes shoppers also reached a new high of €41.60, significantly ahead of any other retailer. Aldi saw the strongest growth of all the retailers over the 12 weeks, with sales up by 5.3 %.

Retailers were also helped out by the calendar in 2016. Thanks to Christmas Day falling on a Sunday, shoppers had two extra days to pick up their Christmas groceries.This extra time to shop in the build-up to Christmas meant that the average household spent €193 on their Christmas festivities, €35 more than last year. Despite the extra shopping days, 55% of the population still chose to stick with tradition and tackle their ‘big shop’ on Friday, December 23rd making it the busiest day of the year for retailers.

David Berry, director at Kantar Worldpanel believes that shoppers chose to treat themselves this Christmas, particularly after the uncertainty of 2016. “ Irish families spent 9 per cent more on seasonal confectionery than last year, making sure they had plenty of sweet treats to keep them going over the festive period.” according to Berry. “ More were in the mood for a Christmas tipple too, with alcohol experiencing double-digit growth. This was partially down to more multi-buy promotions in stores tempting shoppers to up their spend,” he added.

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SuperValu and Dunnes Stores locked at top spot in supermarket wars

 

 

SuperValu and Dunnes Stores are tied for top spot with a market share of 22.5% each. Tesco find themselves in third place with 21.8% in the increasingly competitive battle of the supermarkets.

Kantar Worldpanel have released figure from the 12-week period ending December 4th, which show SuperValu have increased their market share to become level with Dunnes Stores. This gain shows Supervalu recovering quickly from their fall to second place last month.

SuperValu’s rapid climb back to top spot demonstrates how fierce competition is between Ireland’s ‘big three’, with just 0.7 percentage points now separating the three largest retailers. While both retailers saw sales grow slightly over the period, Aldi posted the strongest growth in the quarter with sales up by 6.1% over the last 12 months.

Lidl increased its sales by 4.3%, a figure which sees them ahead of overall market growth, which currently stands at 3.7%, leading to a slight increase in market share for the retailer. Similarly, Aldi and Lidl are also locked in a dead heat, with each of the German giants boasting a market share of 11%.

Kantar Worldpanel’s Ireland director David Berry said “Having reached the number one spot for the first time last month, Dunnes now shares that position with SuperValu – a real testament to just how competitive this marketplace is,”

SuperValu sales have positively increased by 1% over the last 12 weeks, which translates to shoppers spending an average of an extra €1 every time they visit a SuperValu store.

The long running Shop and Save campaign continues to prove successful for Dunnes with nearly 64%of households venturing into stores over the past 12 weeks. Shoppers on average visited just over once a week, spending €39.50 per visit – an increase of almost €3 on last year.

Dunnes currently stands as the only retailer which has delivered stronger growth for brands – (up 5.7%) than own label goods which increased by 3.3 per cent in the last 12 week period.

Aldi to expand premium range

Aldi will increase their premium range to facilitate the demands of current shoppers. The discount grocery retailer that has been experiencing a growth trajectory over the past 2 years will grow their product line by a further 150 to 1,500.

Aldi currently operates 132 stores across Ireland. They will expand their premium range by a third, capitalising on renewed consumer confidence. Sales of their ‘Specially Selected’ premium range had experienced sales growth of 24% in 2015.

Aldi will expand their total number of product lines by 150 to 1,500 which will include a one-third expansion in ‘Specially Selected’, Aldi’s premium line. The majority of these will be in yogurt drinks, wines, cooking sauces and deserts.

Aldi to launch music streaming service to rival Spotify

Discount Grocery Retailer Aldi will launch a music streaming service on the German market. Collaborating with Napster, ‘Aldi Life Musik’ will have unlimited access to Napsters extensive music library for €7.99 a month.

The new music service which launches today (September 24th) is a paid only service, with no free option. The service is the first of its kind on the German market and features 34 million songs, ready to go playlists, radio stations and audiobooks. Music streaming revenue in Germany rose by 87% for in the first half of this year, versus last year.