SuperValu Best Performing Of 'Big Three' Supermarkets
Published on Feb 17 2014 3:59 PM in Retail
SuperValu was the strongest performer in the latest Kantar Worldpanel data covering the 12 weeks ending February 2. The retailer increased its market share to 20.1%, up from 19.9%, and was the only one of the 'Big Three' to post growth during the period.
Mark Thomson, business unit director at Kantar Worldpanel, explains: "Amid a challenging market backdrop, SuperValu continues to maintain solid growth ahead of the market at 0.7%. It has benefitted from welcoming around 30,000 new customers to its stores, with 63% of the Republic of Ireland now doing their grocery shop with the retailer. The store’s increased prominence is key as 24 Superquinn stores convert to the Supervalu fascia this month."
Superquinn recorded a market share of 5.1% in the period, meaning that once the market shares of both are combined, SuperValu could be hot on the heels of market leader Tesco, which saw its share drop to 26.0% in the period, a 6.6% decline on the same period last year.
Thomson said that while a combined SuperValu "is not an immediate threat to Tesco’s overall presence in Ireland, it will have an impact regionally as SuperValu’s share in Dublin will effectively double to 21.4%. This will put more pressure on Tesco, specifically in Dublin where the retailer already has a higher than average share of the market in the area."
Dunnes, too, lost ground on its rivals, with its share now standing at 23.8%, a drop of 1.9% on the same period last year.
Martin Kelleher, Managing Director SuperValu commented on the success of the retailer this period: "Shoppers continue to vote with their feet and are choosing SuperValu because of our unique combination of value, fresh food leadership and our commitment to Irish suppliers and local communities across the country. By continuing to put the customer first, we hope to maintain the momentum behind SuperValu, which has seen the brand grow 30% over the past ten years."
Both Aldi and Lidl also continued to post growth. Aldi increased its share from 5.9% to 7.2%, while Lidl rose from 5.8% to 6.6%.
Welcoming the figures, Rob Farrell, Aldi’s Group Buying Director said, “Aldi has always been confident of its ability to give consumers what they want; exceptional quality own-brand groceries at guaranteed low prices. More and more shoppers are recognising that swapping to Aldi means genuine savings on brand-quality products without any compromise on quality."
The period saw a decline in overall grocery spend, with Kantar attributing this to a fall in the price of vegetables, "with shoppers spending €12 less on fresh vegetables compared with the same period last year," according to Thomson.
He added that families, who represent €1 in every €3 spent on groceries, are having to manage their shopping budgets more. "This has put more pressure on mainstream retailers such as Tesco and Dunnes at a time when their rivals such as Aldi and Lidl, are also positioning themselves towards family value and affordable ranges.
"Tesco and Dunnes are both popular amongst shoppers doing larger shopping trips where they spend €100 or more, and this is where Aldi and Lidl are making big gains."
© 2014 - Checkout Magazine by Genna Patterson