Grocery market grows by highest rate since January

The Irish grocery market has grown by 0.4% for the 12 weeks to Nov 25, the second month of sales growth in a row and the highest rate since January this year.

The latest supermarket share data from Kantar Worldpanel has also shown that the fortunes of Dunnes Stores have begun to improve in the run-up to Christmas, while Aldi has achieved a second consecutive month of growth above 30%.

Grocery inflation stands at 4.2% for the same 12-week period, marginally ahead of the 4.1% in the previous period and the highest since the 4.4% seen in Aug 2011.

Kantar commercial director David Berry said: “There is no doubt that household budgets are increasingly stretched and this is reflected in the changing nature of the grocery shop.

“To help offset the impact of price inflation the ‘little and often approach’ to shopping continues; with the average household making an extra 2.5 grocery trips this year — that’s an additional four million trips across the country.”

For the retailers it has been an encouraging month, particularly at the start of the run-up to Christmas.

Mr Berry said: “Fortunes at Dunnes have also begun to improve this month. Despite sales growth at the retailer still trailing behind the market, it has strengthened its position since September when sales declined by almost 8%. Dunnes now has a 23.2% market share and is in a better position to compete as the crucial Christmas trading period approaches.”

Much of Aldi’s success has been achieved by attracting more shoppers to the store and encouraging them to shop more often and increase the amount they spend.

Tesco has also grown ahead of the market, leading to a boost in market share of 0.2 points to 27.9%. This is thanks in part to its wide shopper base, with almost 83% of Irish households having shopped in Tesco over the past 12 weeks — an improvement of 3% when compared with last year.

Kantar’s figures are based on over 30,000 identical products compared year-on-year in the proportions purchased by Irish shoppers. It is a “pure” inflation measure in that shopping behaviour is held constant between the two comparison periods. Shoppers are likely to achieve a lower personal inflation rate if they trade down or seek out more offers, Kantar said.


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