Discounters claim 10% of grocery market share

Discounters continue to expand in Irish market due to increased trust in their fresh food offering

Bolstered by customers putting greater faith in their fresh foods, the German discounters have managed to claim just over 10% of grocery market share

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The latest grocery market figures from Kantar Worldpanel in Ireland, published for the 12 weeks ending 17 April 2011, show the German-owned discounters Aldi and Lidl continue to surge forward in the market, at the expense of other retailers.  

Aldi leads the market in terms of growth, increasing value sales by a remarkable 27.5% compared with last year. Lidl also outperformed the market posting the second highest growth rate of 8.3%, a significant increase from February of this year when growth was only slightly ahead of the market at 3%. Both retailers increased their market shares, from 3.3% to 4.2% for Aldi and 5.7% to 6.1% for Lidl, compared to this time last year.

David Berry, commercial director at Kantar Worldpanel Ireland said the discounters’ growth “seems to be driven by customers’ increasing trust in their fresh food offering. Both retailers have seen phenomenal growth of 45% for Aldi and 37% for Lidl over the last three months, in their fresh meat, poultry and fish categories.”

He added however that to continue to gain market share the two retailers “will have to entice more customers to their stores on a more regular basis. Currently shoppers visit Tesco and Dunnes on average more than once a week. In comparison, the average shopper only visits an Aldi or Lidl every other week – fresh food provides these two retailers with an incentive for customers to shop there more regularly.”

Superquinn continued to suffer this month with negative sales growth of 5% and a loss of market share from 6.9% last year, to 6.4% in the same period this year, leaving the retailer with Lidl snapping at its heels for position as the fourth largest grocery retailer.

Tesco posted a slight increase in growth of 1.6%, expanding its market share from 26.9% last year to 27.1%. Dunnes and SuperValu dropped market share slightly compared to last year from 23.7% to 23.6% and 19.8% to 19.5% respectively.
Market growth crept up slightly this period to 1.1% compared with 0.8% last month despite a minor rise in price inflation.

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