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Grocery shopping trips to the North halved during second quarter of year
By Geoff Percival
Instances of people travelling to the North to do their grocery shopping halved during the second quarter of this year on a like-for-like basis, according to figures.
Latest quarterly Irish grocery market data from international consultancy group Kantar Worldpanel shows supermarkets in the Republic are continuing to capture more of the domestic market than their counterparts north of the border.Republic-based supermarkets now account for 88% of grocery spend from domestic shoppers. The figures also show that only 8% of households went North — to the likes of Asda and Sainsbury — for their groceries during the second quarter; down from a figure of 16% for the same three-month period last year.
“The continued high cost of fuel and a weaker euro means that fewer shoppers are willing to travel to the North for their groceries and are, instead, looking for value at home,” said David Berry, commercial director at Kantor Worldpanel.
However, the economic slump has continued to take a toll on overall grocery figures, with total combined sales falling by 0.5% in June, following a monthly 0.2% fall in May.
That said, there were some stark differences in performance for the main players during the quarter.
Tesco and SuperValu saw sales rise 2.8% and 1.1% year-on-year, respectively, during the period. The latter now has 19.8% of the Irish grocery market, with Tesco controlling 28.6%; a record market share for the British multiple.
It was a different story for two other Irish-owned players — Dunnes’ grocery sales dropped 5%, dragging market share down to 22.4%, and the Musgrave-owned Superquinn saw sales fall 10.5%, with market share down to 5.5%.
“Tesco has grown its share by managing to encourage its shoppers back through the doors more often; meanwhile SuperValu’s drive to recruit new customers to its stores seems to be working,” said Mr Berry.
The discounters did well — Aldi upping sales by 20.4% and Lidl by 2.8%.
According to Mr Berry: “The discounters continue to increase their combined market share, which now stands at almost 12%, as shoppers look for value. Aldi has recorded sales growth of just over 20%, bringing their total share to 5.3%, just 0.2% behind Superquinn. Lidl has also posted substantial growth and has a 6.5% share for the first time.”