Business Irish

Saturday 24 March 2018

SuperValu remains Ireland’s largest grocery retailer despite Tesco's strong challenge

SuperValu store in South Dublin
SuperValu store in South Dublin
Louise Kelly

Louise Kelly

Supervalu has managed to retain its position as Ireland's largest grocery retailer, despite impressive sales figures from Tesco.

While Tesco presented a strong challenge with 3.4pc growth, Supervalu's year-on-year sales growth of 0.4pc was enough for the store to hold onto the top spot.

The rankings were revealed in the latest grocery market share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending August 13.

"SuperValu has improved the number of items sold per trip but has done so at a lower price point and now holds a 22.2pc share of the grocery market, down 0.3 percentage points on last year," David Berry, director at Kantar Worldpanel, said.

"This is the fourth consecutive period of growth for Tesco, which is a clear indication that it’s achieved a turnaround in performance.  This is also only the second time since July 2014 that Tesco has posted a year-on-year increase in market share."

Dunnes Stores, in third place, has managed to maintain its market share of 21.1pc, with annual sales increase of 2pc.

Mr Berry said that "some interesting dynamics" have helped boost Dunnes’ performance this period, as the number of households shoping at the store has dropped 5pc, a reduction of 68,000.

"However, this decline in footfall is cancelled out by a healthy improvement in how much shoppers are spending.  The average Dunnes basket now includes an additional item and is worth an extra €2, suggesting that it’s performing well in the larger ‘main’ shop of the week and less so among smaller top-up trips," he said.

"If Dunnes can encourage some of its lapsed shoppers to return to the store then it could be seeing a healthy increase in sales growth and market share."

Meanwhile, Aldi has tied with Tesco for the title of fastest growing retailer with sales growth of 3.4pc improved its market share to 11.5pc

This figure matches the record level the retailer first saw in March of this year.

However, Lidl continues to perform ahead of the market, with sales growth of 2.7pc meaning it could achieve a market share ahead of 12% for a second period.

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