Thursday 8 December 2016

Dunnes Stores is now Ireland's second largest grocery store - pushing Tesco into third

Published 24/10/2016 | 12:21

Dunnes Stores
Dunnes Stores

Dunnes Stores has become the country’s second-largest grocery retailer, pushing Tesco into third place in the multi-billion euro market, new figures this morning show.

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Dunnes, headed by siblings Margaret Heffernan and Frank Dunne, now has 22pc share of the grocery market here, according to data from Kantar Worldpanel.

Supervalu, the chain controlled by Cork-based Musgrave, has held onto its top spot. But with a 22.4pc share, Dunnes Stores has also significantly narrowed the gap with the leader.

Tesco’s position as the third-biggest grocery retailer in Ireland gives it a 21.6pc share.

The British multiple has been lowering prices in an effort to lure more shoppers. Kantar Worldpanel said that while the value of its sales here slipped 1.3pc in the 12 weeks to October 9, its volumes in the period were higher.

In interim results published earlier this month, Tesco said that it recorded like-for-like sales growth of 0.3pc in the first quarter in Ireland, and 0.1pc in the second quarter.

A Tesco spokesperson said that the average selling price per item at the chain’s outlets here is now 3.7pc lower than this time last year, which impacts its share of the overall spend in the market. In volume terms, the retailer said Tesco remains the leader here, with a 21.3pc share.

Dunnes Stores has been investing heavily in its ‘Shop and Save’ couponing initiative to buy shopper loyalty.

 It has also been revamping its offer, moving more upmarket with new lines of products. Earlier this year, it bought Tipperary butcher Whelans, and it also acquired the small coffee chain, Cafe Sol, last year.

“Since its introduction, Dunnes’ ‘Shop and Save’ initiative has gone from strength to strength,” said Kantar Worldpanel director David Berry. “The campaign has been very successful in persuading shoppers to spend more, and we’ve seen a whopping 18pc increase in shopping trips where consumers spend over €100 since last year.”

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