Business Irish

Friday 27 April 2018

Tesco retains the top spot as Ireland’s biggest grocery retailer

The Tesco store in Wexford where the incident occurred.
The Tesco store in Wexford where the incident occurred.
John Mulligan

John Mulligan

Tesco has managed to hold on to the top spot as Ireland’s biggest grocery retailer, new figures published this morning show.

It managed to retain the position despite seeing its share of the multi-billion euro grocery market slip 0.7 percentage points to 24.9pc in the 12 weeks to July 19, according to new data from research group Kantar Worldpanel.

SuperValu remains in second place, with a 24.3pc share. That’s 0.4 percentage points lower than during the previous period.

The pair have been battling each other for the top grocery position after SuperValu edged Tesco off the number one spot earlier this year. It was the first time in more than a decade that Tesco hadn’t been Ireland’s biggest grocery chain.

Dunnes saw its market share rise 1.1 percentage points, after the value of its sale rose 6.7pc in the latest period. It’s been relying on vouchering to shore up its market share. That vouchering is costing Dunnes Stores tens of millions of euro.

Meanwhile, Aldi and Lidl have continued their march. The pair now control a combined 17.6pc of the Irish grocery market.

In the 12-week period to July 19, Aldi’s market share rose 0.3 percentage points to 8.6pc, while Lidl’s rose 0.5 percentage points to 9pc – a record for the group in Ireland. The value of their sales were up 5pc and 8.1pc respectively.

“Competition is increasingly intense within the grocery market with price reductions and money-off vouchers becoming the norm,” according to David Berry, director at Kantar Worldpanel. “The strongest performer has been Lidl, with impressive sales growth lifting its share of the market to an all-time high of 9.0pc. The discounter has recruited a record number of customers this quarter, with 66pc of all Irish householders visiting Lidl at least once during this time.”

After a difficult few years, he said that Tesco may also be turning a corner here.

“There are signs that Tesco’s decline in sales are levelling off following a difficult two years, and the fall of 1.5pc this quarter is the most positive performance the retailer has seen since April 2013,” he said.  =Tesco is starting to successfully bring in more shoppers, with an additional 10,000 households visiting the retailer in the past quarter compared with last year.”

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