SuperValu Maintaining Market Share As Ireland’s Second Largest Supermarket
Published on Apr 14 2014 2:19 PM in Retail
(30 April) SuperValu has held on to its position as the second largest supermarket in Ireland, according to the latest supermarket share data from Kantar Worldpanel. For the week ending March 30, the retailer (incorporating the former Superquinn stores) posted 25.2% market share, keeping it ahead of Dunnes Stores, which fell to 21.9% (a drop of 3.9% year on year).
SuperValu, too, saw a slight drop in its market share, by 1.6%, however the retailer was quick to attribute that drop to increased own-brand sales. Commenting on the retailer's performance, Martin Kelleher, Managing Director SuperValu said, “Since renaming the 24 Superquinn stores, we have seen an increase in footfall in store due to the better value available in store, primarily due to the popularity of the SuperValu Own Brand range. As shoppers have taken advantage of the excellent value on offer in terms of price reductions, promotions and Own Brand, the average cost of a grocery basket has been driven down.”
David Berry, commercial director at Kantar Worldpanel said that the enlarged SuperValu network of stores under the one single facia, now captures over 25% of take-home grocery sales, almost a three point lead over Dunnes and one point behind Tesco. “Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer’s position as a major player in the grocery market," he said. "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.”
While Tesco remains the largest retailer, with 26.0% market share, it saw a drop of 6.6% year-on-year, the figures reveal. Both Tesco and Dunnes have been impacted by the rise of Aldi and Lidl, the report found. Dunnes, in particular, saw its share of the market drop below 22% for the first time in six months, as 40,000 fewer shoppers have visited the retailer this year.
Berry says, “Both Aldi and Lidl continue to post double digit sales growth in this tough market. Looking back over the last three years, we see that Aldi and Lidl have captured a combined 3.8 share points from their competitors, with more shoppers visiting the store, shopping more often and spending more on each trip - both retailers are growing across all key metrics."
Berry says that Aldi has capitalised by capturing more spend from its shoppers. Each shopping trip has grown by an average €2 per trip with two additional items being added to baskets. "Lidl has also performed strongly with double digit sales growth for the fourth successive month," he says. "It posted a market share of 7.5% – just below its record 7.7% seen last August. This growth is likely to continue in the coming months thanks to a number of recent new store openings.”
Berry also says that there is a continuing reduction in consumer spending, with the value of the grocery market falling for the fifth successive month. This was the grocery market’s weakest performance since September 2011, with sales declining by 0.6%. “Reducing price inflation is paying a significant part in this with important food items such as vegetables and bread now actually cheaper than last year.”
© 2014 - Checkout Magazine by Genna Patterson