SuperValu Moves Into Second Place After Superquinn Rebranding
Published on Mar 19 2014 6:33 AM in Retail
SuperValu has overtaken Dunnes to become Ireland's second biggest grocer, just behind Tesco, according to the latest data from Kantar Worldpanel (12 weeks ending March 2, 2014).
SuperValu now accounts for 25.3% of the market, the figures reveal, with this growth attributed to the rebranding of the 24 Superquinn stores to SuperValu’s fascia.
David Berry, commercial director at Kantar Worldpanel says, “Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer’s position as a major player in the grocery market.”
SuperValu is now a mere 1.1 percentage points behind Tesco, which remains market leader with 26.4% of the market. Berry adds, “SuperValu’s sales have remained broadly in line with the market, which shows that it has been able to retain its market share while acquiring assets.” Berry believes the main challenge for SuperValu now is to convince previously loyal Superquinn shoppers of the merits of the SuperValu brand, and ultimately hold onto their custom.
Meanwhile, discounters Aldi and Lidl continue to perform ahead of the market, on 7.5% and 7.0% market share respectively, up from 6.1% and 6.2% a year earlier. “Despite the overall grocery market declining for the fifth successive month, Aldi and Lidl continue to impress," says Berry. "Both retailers are delivering double digit sales growth, and have increased their market shares by 1.4 and 0.8 percentage points respectively.”
In the past three years the discounters have managed to obtain a combined 3.8 share points from the competition, and have grown sales by 37% in an overall grocery market which has grown by just 1%.
Dunnes Stores share is currently 22.4%, down from 23.3% for the same period last year.
February saw the grocery market’s weakest performance since September 2011, with sales declining by 0.6%. “My view would be that shoppers are continuing to keep a tight hold on spending, which is an ongoing theme, and that in this quarter the impact of falling inflation has added to this," says Berry.
In addition, falling inflation has played a significant part in this as vegetables and bread, two important staple items, are now cheaper than they were last year. “The Produce category on its own has dropped in value by €29m, so you can clearly see the importance of this one category on the overall picture,” says Berry.
© 2014 - Checkout Magazine by Genna Patterson