Shoppers flee to discount stores, report shows

SHOPPERS convinced they are being fleeced in rip-off Ireland are fleeing to discount stores Aldi and Lidl as Dunnes, SuperValu and Superquinn lose market share, research to be published this evening indicates.

The research conducted by Behaviour & Attitudes Market Research (B&A) shows Lidl’s market penetration has risen from 5% to 11%, Aldi 3% to 4% while Dunnes fell 21% to 18%, SuperValu, 20% to 19% and Superquinn 9% 60 6%.

Founding partner at B&A Des Byrne said German-owned Aldi and Lidl appear to be the main beneficiaries as shoppers fed up with rip-off Ireland were willing to try out the German newcomers with many customers transferring their weekly shop to the discounters.

Mr Byrne, who addresses the Marketing Society October meeting in the Mont Clare Hotel, Dublin on the survey tonight, said that while Irish consumers believe prices have risen by 19% in the last 12 months they have actually increased by just 3%.

“Irish shoppers are convinced they are being ripped off and are actively looking for value - this is why they are going to Lidl and Aldi. People believe they are living in a rip-off society in all aspects of their lives from drink prices to a lack of basic infrastructure. Research indicates we are very grumpy at the moment,” he said.

The B&A research is follow-up on a study last year which the company provides to its core customers who are manufacturing suppliers to the general retail trade.

Mr Byrne said the inroads Lidl and Aldi are making into the Irish market is remarkable.

A year ago just 45% of shoppers had been inside an Lidl store but by September this number increased to 59% with 6% of shoppers using the company’s stores for the main shopping and 2% using Aldi, according to B&A.

Tesco appear to be faring best in the battle for customers according to the survey which found that 26% of shoppers do their main shopping there, up from 22%. However, Dunnes have taken a hit with just 22% (2002: 27%) of respondents indicating they use the company’s outlets as their main shopping location.

Supervalu’s share held steady with a drop of one percentage point in store usage but surprisingly Superquinn at the upper end of the market, away from the direct impact of discounters Aldi and Lidl, have taken a massive hit with its hold on the weekly main shopper segment collapsing from 12% to just 6%.

Mr Byrne believes Superquinn have become victims of what he termed the ‘cascade effect’ with Superquinn losing shoppers to Tesco, SuperValu and Dunnes while SuperValu and Dunnes in turn lose market shares to Aldi and Lidl.

Mr Byrne says the trend to low cost shopping by younger consumers will impact on branded good sales, but he says the impact on inflation should be positive as retailers cut prices to maintain market share.