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Supervalu sees growth in supermarket sector, as Tesco sales drop

Retailer Supervalu has continued to see growth in the supermarket sector, as Tesco's share of the...
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Newstalk

12.05 28 Oct 2014


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Supervalu sees growth in super...

Supervalu sees growth in supermarket sector, as Tesco sales drop

Newstalk
Newstalk

12.05 28 Oct 2014


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Retailer Supervalu has continued to see growth in the supermarket sector, as Tesco's share of the market fell.

Figures from Kantar Worldpanel in Ireland, for the 12 weeks ending October 12th, show SuperValu is the only major multiple grocer to be in growth - other than the discount retailers.

It also highlights a continued strong performance from Aldi and Lidl, as the two reach a combined market share record of 16.5%.

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The discount retailers have both continued to see strong growth, with shares in the market growing by 14.3% and 14.9% respectively over the past year.

Aldi has successfully attracted more shoppers through its doors and is increasing its share of baskets between €50 and €100.

Meanwhile Lidl has seen shoppers increase their average spend by €18, while also visiting the store more often.

Dunnes has seen a slight reduction in sales of 0.4%, after posting five months of consecutive growth. Average spend there has fallen by almost €7, which has been a significant factor in its recent performance.

Yet despite losing sales, Dunnes has captured a larger share of the market as its main rival Tesco continues to drop back.

Dunnes current market share of 22.7% is its highest since February of this year, and it has made moderate gains with shopper numbers - attracting an extra 13,000 shoppers into its stores.

Meanwhile its share in the big shop, of baskets more than €100, is the highest among all retailers - at 37.2%.

In a similar story to the UK, Tesco Ireland has seen less share loss than in recent months - posting a sales decline of 4.6%.

But customers are continuing to increase the number of trips they make to Tesco stores - meaning that if the retailer can persuade shoppers to add to their in-store spend, it could be turning a corner in terms of performance.

Georgieann Harrington is consumer insight director at Kantar.

"While SuperValu's growth has been moderate, its performance has been consistent. It continues to perform well through 'top up' shops and smaller convenience trips," she said.

"And the acquisition of Superquinn has given it an improved balance of store locations across the country, with 223 outlets to choose from and a vastly increased presence in Dublin," she added.


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