Sale of branded goods accelerates faster than own-label products for first time in four years
The sale of branded goods in Ireland’s grocery market has accelerated faster than the sale of own-label products for the first time in four years, as consumers feeling more flush with their cash decide to splash out.
Research group Kantar Worldpanel said this morning that the sale of branded goods in Ireland’s grocery sector during the 12 weeks to January 28 rose by 4pc in the period – a stronger performance than own-label categories.
“The recovery of branded sales began in late 2017 and has continued apace in the new year,” according to David Berry, director with Kantar Worldpanel.
“Shoppers parted with an additional €49m on their favourites during the past 12 weeks,” he added.
“This is the first time in four years that brands have posted stronger sales growth than their own label counterparts, with alcohol, baked goods, frozen food and toiletries performing best.”
The Kantar Worldpanel data also shows that Dunnes Stores remains the kingpin in Ireland’s grocery business, with a 23.2pc share of the market in the latest period.
Tesco had 22.7pc, while Musgrave-controlled SuperValu had 22.2pc.
Mr Berry said that although Dunnes Stores has witnessed a decline in footfall, it has benefited as its shoppers spend more. The retailer’s long-running voucher promotion scheme, which has cost it tens of millions of euro, has played a role in enticing shoppers.
“Loyalty continues to define Irish grocery, with shoppers now less likely to shop around and committed to spending more with their retailer of choice,” said Mr Berry.
“Dunnes has capitalised on this trend, successfully counteracting lower footfall with higher spending from its existing customers.”