Discount retailers keep shoppers south

SHOPPERS are still flock- ing to discount retailers Aldi and Lidl but no longer as keen to head to the North for groceries, with figures showing a 21% slide in Irish shopper sales at Asda and Sainsbury’s.

Aldi, however, increased its sales by more than 12% in the past year while Lidl jumped close to 8%. Tesco also attracted more shoppers, with sales increasing almost 6% in the 12 months to the end of October.

Both SuperValu and Superquinn lost market share in the period.

Although SuperValu sales remained flat, their share of the market dropped slightly to almost 20%. Superquinn’s share dropped to 6.5%, as sales fell by close to 3% in the last year, according to Kantar Worldpanel’s latest grocery market report.

The report said price remains the most important factor for shoppers as convenience and premium become less of a priority.

Commercial director at Kantar Worldpanel Ireland, David Berry, said: “Sales within Dunnes Stores continue to decline, by -0.7% since the last period, but this is the lowest rate we have seen since July 2009.

“Its strongly publicised promotions at Halloween, including 99c pumpkins, will have helped to boost sales this period and also provide a glimpse of the heavy promotions likely to feature in supermarkets in the run up to Christmas.”

Last month figures showed that the grocery market started to grow for the first time in 16 months. The latest report showed the Irish grocery market grew at 1.4% in the last year but the gap between the growth rate and the level of inflation has widened, with prices increasing by 3.3%, which is 2% above market growth.

This, according to the report suggests that shoppers, in the face of higher prices, are saving their pennies in preparation for the tax rises likely to be announced in the December budget.

Mr Berry said it will be interesting to see the impact that low-cost grocer Iceland will have on the Irish grocery market.