Grocery market slows down – Discounters and SuperValu best performers – Kantar

Grocery market slows down – Discounters and SuperValu best performers – Kantar
Latest figures from Kantar show that growth in the grocery market in Ireland slowed to 1.9% in the 12 weeks ending 18 April. In the most recent four weeks, sales actually declined by 3.3% compared with the same period last year when Irish shoppers stocking up ahead of the first national lockdown generated record-breaking sales for the supermarkets.

Emer Healy, retail analyst at Kantar, commented: “It’s hard to believe that we’ve been living with restrictions for over a year now, and it means grocery market growth will fluctuate in the coming months as we compare sales against the different stages of lockdown in 2020. Growth may have dipped year on year in April, but we’re still some way from normal and take-home grocery spending remains an incredible 19.4% higher than pre-pandemic levels. With restrictions still firmly in place and most of us eating all our meals at home, the average household grocery bill was €245.10 higher in past 12 weeks than in 2019.”

Venturing out

While Ireland remains in lockdown, there were signs of growing consumer confidence this month. Healy said: “As the vaccine rollout continues, Irish shoppers are beginning to venture out more and they visited the supermarket an additional 3,992,538 times in the past four weeks compared with this time last year. This is the most shopping trips in a month since March 2020. The mostly vaccinated over 65s are leading the return and increased their visits to bricks & mortar stores by 13.7% compared with this time last year – ahead of the national rate of 8.9%.”

Online sales slow down

As people return to physical stores, the boom in online grocery shopping has started to soften in Ireland. Online grocery sales still grew by 29.3% in the past four weeks, but this was the slowest rate in a year as people added slightly fewer items to their digital orders and felt more comfortable visiting the shops.

“It’s clear that people are itching to get out and about and visit stores again, but that doesn’t mean completely waving goodbye to their new online shopping routines anytime soon,” said Healy.

“Online grocery accounted for 5.6% of sales in the past 12 weeks – a significant jump from the pre-pandemic level of 2.5% – and 16.5% of Irish households placed an order during this period. With all retailers now offering some form of digital service, either directly or through partnerships with delivery platforms, many shoppers have been converted to the ease of online grocery long term and will continue to balance it with smaller in-store shops in the future.”

Treat yourself

Looking at the performance of individual retailers, SuperValu and Lidl benefited from consumers wanting to treat themselves this month, experiencing significant growth in shops where more than a third of the basket was made up of treats such as alcohol and confectionery. At SuperValu and Lidl, these indulgent shops increased by 19% and 21.5% respectively year-on-year.

SuperValu continued to hold the largest share of the grocery market at 22.5%, its highest level since June. Meanwhile, Tesco’s sales increased by 2.0%, as the grocer attracted new customers to boost sales by €1.1m.

Dunnes accounted for 21.1% of grocery sales this period. As new regulations that restrict alcohol promotions through customer loyalty schemes come into force, Kantar highlighted that Dunnes saw its share of alcohol sales drop by 2.8 percentage points in the past 12 weeks.

Lidl received the most significant boost from people making extra, smaller shops this month. Basket-sized trips increased by 8.8% year on year at the retailer, helping it to achieve the fastest growth this period. Aldi held 12.0% of the market as shoppers continued to pick up additional items in store.