Tuesday 21 November 2017

Tesco challenges for top spot as grocery market trade grows at fastest rate since January

Tesco is growing ahead of the market, with sales up 3.8pc in the 12 weeks
Tesco is growing ahead of the market, with sales up 3.8pc in the 12 weeks
Ellie Donnelly

Ellie Donnelly

Tesco is set to challenge SuperValu for top spot in the grocery store war, with only 0.2 percentage points separating the two grocery store chains.

The news comes as the grocery market sector grew in the 12 weeks to 18 June at the fastest rate since January 2017, reflecting the impact of Easter on both consumers and retailers.

The sector grew by €80m, a 3.5pc increase year-on-year, according to the latest Kantar Worldpanel data.

While SuperValu held on to the top spot, Tesco is growing ahead of the market, with sales up 3.8pc in the 12 weeks.

Read more: Tesco's Irish volumes rise as it keeps lid on prices

“SuperValu can’t remain complacent, with the battle for the top spot hotly contested over recent years and only 0.7 percentage points separating the top three retailers, there can’t be any guarantees that you’ll stay in position,” Cora Campbell, consumer insight director at Kantar Worldpanel said.

Despite a drop in shopper numbers, Dunnes Stores remains the strongest growing retailer, increasing its value sales by 4.5pc.

Existing Dunnes customers are shopping more often and spending an additional 10pc on average, increasing their average spend in the retailer by €44.50 according to the latest data.

Read more: Home-grown names top rankings of 2017's 'most trusted' firms

Meanwhile discount retailers Lidl and Aldi both enjoyed a strong performance, holding on to market share at 11.7pc and 11.2pc respectively.

During the period Lidl’s growth accelerated to 3.3pc, while Aldi was just ahead with 3.7pc growth.

The survey found that overall sales of private label goods are up 4.2pc, accounting for 54pc of grocery spend.

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