Thursday 23 May 2019

Tesco in top spot as heatwave lifts sales

'The research group said Tesco continued a strong performance during the first half of the summer, and was the only grocery retailer to increase its market share in the period - to 22.5pc - with value of sales rising 6.2pc.' (PA)
'The research group said Tesco continued a strong performance during the first half of the summer, and was the only grocery retailer to increase its market share in the period - to 22.5pc - with value of sales rising 6.2pc.' (PA)
John Mulligan

John Mulligan

Tesco has retained the title of Ireland's biggest grocery retailer as exceptional summer weather saw consumers splash out on beer, water and burgers.

The latest grocery data from research group Kantar Worldpanel shows that sales of lager soared 11.6pc in the 12 weeks to July 15, with the World Cup also providing a boost to retailers.

Kantar Worldpanel said the equivalent of an extra seven million pints, or 3.9 million litres of lager, was sold in the 12-week period compared to the corresponding period a year ago. It added that 42.4pc of Irish households bought lager at least once in the 12-week period, as the country basked in fine weather.

Shoppers bought bottled water on 1.8 million more occasions in the latest 12-week period compared to the corresponding period last year, helping sales grow by 27.3pc.

"A Europe-wide shortage of CO2 may have stifled sales of carbonated water, which grew at a third of the rate of still water, with retailers and manufacturers shifting their focus to stills where necessary," said Kantar Worldpanel consumer insight director Douglas Faughnan.

The research group said Tesco continued a strong performance during the first half of the summer, and was the only grocery retailer to increase its market share in the period - to 22.5pc - with value of sales rising 6.2pc. Kantar Worldpanel said that in-store marketing activity is "increasingly important" in driving spend from shoppers, and that Tesco had a big push via its 'Grillin' and Chillin' campaign, where it promoted sales of barbecue items.

SuperValu, the chain controlled by the Cork-based Musgrave group, was the second-biggest grocery retailer in Ireland in terms of value of sales in the latest 12-week period, with a 21.9pc share, with Dunnes in third on 21.2pc.

Kantar Worldpanel said the SuperValu performance was its strongest since October 2016, with overall sales up 2.6pc. "The retailer traditionally performs well in summer categories as its store network is well catered to shoppers making more frequent top-up shops during the key barbecue season," noted the research group.

German discounters Lidl and Aldi also performed well during the latest period. Lidl has an 11.9pc share of the market, compared to Aldi's 11.5pc.

"Aldi was the only retailer to see a slight rise in shopper numbers this period, with the impact of its current 'swap and save' campaign potentially contributing to increased shopper penetration," according to Kantar Worldpanel.

The firm also noted that the grocery market continued to be in deflationary mode in the latest period, with prices falling 0.5pc.

Irish Independent

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