Monday 5 December 2016

Supermarket wars: Dunnes Stores now second largest grocery retailer in country

Published 26/09/2016 | 11:55

Dunnes Stores
Dunnes Stores

Dunnes Stores is now the joint second-largest grocery retailer in the country, neck-and-neck with Tesco as the pair continue their tussle in the rankings.

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Tesco now faces the prospect of becoming the third-biggest grocery retailer in Ireland, having been ditched from the top spot last year by SuperValu, the chain controlled by the Cork-based Musgrave group.

Figures released this morning from research group Kantar Worldpanel show that Dunnes Stores and Tesco now each have a 21.6pc share of the grocery market.

SuperValu remains on top, with a 22.4pc share during the 12 weeks to September 11.

“Larger trips have boosted sales for Dunnes, with the average spend increasing by €2.50 to €37.20 in the latest quarter, compared with the same time last year,” said Kantar Worldpanel director David Berry. “Dunnes has successfully tempted shoppers to add more expensive items to their baskets, with the average price per item rising to €2.05 – an increase of 12pc on last year.”

Dunnes, controlled by siblings Margaret Heffernan and Frank Dunne, has been revamping its product offerings in an effort to regain lost ground. That investment, coupled with its hugely expensive coupon offer where it gives shoppers €10 off every €50 they spend, has helped to drive its sales.

While Tesco has seen value sales fall by 2.3pc, it continues to sell more items, with volume sales 1.9pc higher than the same time last year, noted Kantar Worldpanel. The research group added that  the performance gap between value and volume sales is a reflection of a lower average price point at Tesco, in part the result of its ‘Staying Down Prices’ campaign.

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