Dunnes Stores tops grocer table as Aldi makes double-digit gains
GERMAN grocery 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. Dunnes has held the top spot since October and is the only one of the big three chains to record year-on-year sales growth, up 6.3pc since mid-July 2018.
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Douglas Faughnan, consumer insight director at Kantar, said Dunnes attracted 65,000 additional shoppers and they 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 the UK giant has seen its turnover in Ireland decline by 0.8pc since mid-July 2018, the 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 discount voucher campaign for higher spending visitors - a promotion already being offered by Dunnes - in the hope of increasing its average spend per visit from the current level of just €24.
Growth in trade at the German discounters, meanwhile, is nearing the 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 retailer. Lidl's 5.4pc year-on-year sales growth leaves it on 12.2pc.
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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.