Thursday 21 November 2019

Grocery sales shine amid jump in cleaning spending

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John Mulligan

John Mulligan

A SURGE in cleaning and the start of the new school year saw Irish shoppers splash out on groceries, according to figures from research firm Kantar.

Grocery sales rose 3.3pc in the 12 weeks to October 6.

Dunnes Stores confirmed its position as the country's biggest grocery retailer, as it continued a revamp that has seen it refurbish stores, and introduce new concepts and brands.

But its costly shop-and-save voucher incentive remains the biggest driver for Dunnes' business, according to Kantar.

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The research group said that Dunnes and SuperValu also benefited from increased sales of cleaning products in the latest period.

"People have spent an additional €7.2m on household cleaning [products] in the past 12 weeks, which is up 5.9pc on last year, and driven by Ireland's two largest retailers," according to Kantar's consumer insight director, Charlotte Scott.

Dunnes had a 22.5pc share of the multi-billion-euro grocery market in the latest period, while Musgrave-controlled SuperValu had 21.5pc. Tesco had 21.1pc.

Kantar noted that despite falling behind SuperValu, Tesco saw a return to growth in the period, with shoppers making extra trips to the retailer compared with last year. It said confectionery has been a key growth category for the chain - particularly important with Halloween next week and Christmas rapidly approaching.

German chain Aldi saw its share of the Irish grocery market hit its highest-ever level during the 12-week period, at 12.6pc, as it targeted younger families. Lidl now has an 11.9pc share.

"Traditionally, Aldi's core shoppers are young and mid-range families, with these customers still a third more likely to shop at the retailer than any other group," said Ms Scott.

"However, growth among these groups has slowed to 0.8pc, as the cohort has cut back on its overall spending by 1.4pc," she said.

An additional 21,000 shoppers passed through Aldi's doors during the latest period, said Kantar.

Irish Independent

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