Dunnes stays top of supermarket table, but Aldi records record growth
German retailers Aldi and Lidl are eating into the market share of SuperValu and Tesco, according to the latest figures from market analyst Kantar.
Dunnes Stores retained pole position with a 21.8pc market share for the 12-week period ending July 14, its 11th straight time on top of the monthly survey dating back to October. Dunnes was also the only one of the big three chains to record year-on-year sales growth, up 6.3pc since mid-July 2018.
Douglas Faughnan, consumer insight director at Kantar, said Dunnes had attracted an additional 65,000 shoppers during the 12-week period – and shoppers spent an average of €42 per visit, the most of any supermarket.
He said Dunnes “typically performs strongest in the second half of the year and the run up to Christmas so has a solid base as we move towards its core trading season”.
A year ago, Tesco was the clear market leader but has seen its turnover decline by 0.8pc since mid-July 2018, worst of all major grocery retailers, to retain a 21.6pc share. SuperValu has fared little better, with sales down 0.5pc from a year ago to leave it third on 21.1pc.
Mr Faughnan said Tesco had launched a new voucher campaign incentivising higher-spending visits - a deal already offered by Dunnes - in hopes of increasing its average spend per visit from just €24.
The German discounters continue to grow at the big three’s expense, nearing a point where combined they soon could represent a quarter of the entire Irish grocery market.
Aldi has recorded the most dramatic sectoral growth of all, with sales 12.8pc higher than a year ago for a 12.5pc share – both records for the German retailer. Lidl’s 5.4pc year-on-year sales growth leaves it on 12.2pc.
Mr Faughnan said Lidl’s growth was driven by increasing sales of its own-brand food products and higher-value premium brands.
Giles Hurley, chief executive of Aldi UK and Ireland, said it was growing twice as fast as competitors in Ireland in part because its advertising emphasises lower prices and is persuading more households to make their main weekly shop at Aldi.
Kantar bases its monthly surveys on the grocery purchases of 5,000 Irish households nationwide involving more than 30,000 products.