Dunnes Stores has secured its position as Ireland's leading grocery retailer the latest figures from Kantar Worldpanel shows.
“For the seventh consecutive period Dunnes was Ireland’s largest retailer, posting sales growth of 3.8%," said Douglas Faughnan, consumer insight director at Kantar Worldpanel.
"While both Tesco and SuperValu saw their overall market shares decline, the pair did enjoy positive sales growth of 1.1% and 0.8%.”
The research shows, that the Irish grocery market grew by 3.5% in the 12 weeks to 24 February 2019, 'putting the sector on a solid footing as the UK finalises preparations to leave the EU'.
"Grocery prices rose by a further 1.5% in the most recent 12 weeks, marking the first time an increase has been recorded for four consecutive periods since February 2017," Faughnan added.
"Prior to this a number of factors had contributed to the lengthy spell of deflation, not least the intense price competition between retailers which has driven down costs for consumers and has been to the benefit of Irish shoppers overall."
However, with prices already rising as Britain’s exit from the EU draws near, increases are likely to continue for the rest of the year.
"More than €3.5 billion of food is imported to Ireland from the UK, which means currency fluctuation can have a substantial impact on grocery prices.” He said.
Faughnan highlights that the continued growth of Aldi and Lidl, which now account for 11.2% and 11.0% of the market respectively 'has encouraged the three traditional retailers to bolster their value credentials by launching promotions such as Tesco’s The 800 campaign, Dunnes’ Everyday Savers and SuperValu’s Fill Your Trolley.'
"Meanwhile, a stronger euro to sterling exchange rate has made British imported goods and ingredients cheaper, allowing retailers to pass some of those savings on to Irish consumers," he explained.
Valentine’s Day Boost
The report showed that supermarkets benefited from those who choose to celebrate at home.
“Convenience continues to be a major priority for people celebrating with a night in," he highlighted.
"Valentine’s Day is no different, helping drive overall sales of chilled ready meals and chilled desserts, which grew by 8.4% and 6.9% in the past three months."
Traditional gifts also benefited, with wine and chocolate confectionery sales growing by 17.1% and 10.7%, the research showed.
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.