The number of shopper visits to stores increased by 10.6% compared to the same period last year. Grocery price inflation translating into higher costs for consumers and an increase in frequency are the main drivers of growth within the market.
12 weeks of data shows 16.6% grocery inflation
The latest 12 weeks to 16th April 2023 saw grocery sales increase by 11.5%. Grocery Inflation (16.6%) continues to be the key driver of growth within the market, with an average price-per-pack increase of 14% year on year. Shoppers are continuing to shop little and often to navigate the cost-of-living crisis, with frequency increased to 10.2%.
Easter celebrations
Easter Sunday dinner increased sales of wine, vegetables, lamb and chilled desserts by an additional €3.4m, €5.1m, €1.5m and €1.3m, respectively. Irish shoppers indulged in Easter chocolate confectionery, spending an additional €3.7m year-on-year. Private-label Easter eggs saw a growth of 28.1%, and branded saw a growth of 13.9% year-on-year. However, out of the total Easter eggs sold, 93% were still branded products. Out of the branded Easter eggs sold, 37.7% were bought on promotion, up 15.4% compared to last year.
Dunnes Stores holds top position:
Dunnes have the top place in the retail market with 23.2%, with the strongest growth of 15.3% year-on-year. This growth is driven by shoppers returning to store more often (+6.9%) and new shoppers to store (+1.4 percentage points). Tesco holds 22.4% of the market with the strongest frequency growth among all retailers (+13.2% year-on-year). SuperValu holds 20.7% of the market, with shoppers making the most trips in-store compared to all retailers. The discounters currently hold 25.4% of the market.
| Retailer | Market Share % | Growth YoY +/- |
|---|---|---|
Dunnes | 23.2% | 15.3% |
Tesco | 22.4% | 14.9% |
SuperValu | 20.7% | 5.7% |
Lidl | 13.3% | 14.4% |
Aldi | 12.1% | 11.4% |
Key insights for a food and drink producer
The importance of own label products & branded seasonal products
Own-label or private-label products continue to show strong growth. Shoppers continue to trade down to own-label products, with sales rising 15.6% compared to brands which grew at 8%. Own-label products in the value category or value segment saw the strongest growth and are up 33.4% year-on-year. Currently, brand has the dominant market share at 47.5%, while private label holds 46.9% of the market. Easter egg sales figures are impacting the brand and private label market share split this month.
Online presence
Online sales continued to grow with a 4% increase year-on-year. Unlike the total grocery market, shoppers returned to online less often (-3.5% year-on-year). Shoppers purchased less volume compared to last year (-13.5%). Online attracted new shoppers who contributed to an additional €6.9m to its performance, with 16.5% of Irish households purchasing online. If you currently have an online presence, it is essential to review your website. Is it fit for purpose? Is it easy for potential customers to purchase products? Both the Local Enterprise Office and Enterprise Ireland can assist.
Seasonal Period
Retailers and producers place great significance on seasonal periods. With Summer just around the corner, it's crucial for producers to assess products in their respective categories. Take a glance at nearby products for fresh ideas, popular trends, and flavours, which can often be adapted from other categories. This is critical as you plan for the next key seasonal periods within your categories. Retailers will be analysing market products, so it's imperative for producers to do the same and plan accordingly for the upcoming seasonal period.
If you would like to discuss your retail strategy please contact me on:
stephaniewalsh@ifac.ie or call me on 0876061478
About Stephanie:
Stephanie has over ten years of retail experience in a multinational retailer, working with Lidl Ireland as a Senior Dairy Buyer. In her role, she worked with various suppliers, developing products, packaging and negotiating multi-million-euro deals.
Stephanie holds a B.Applied Science in Food and Business from St.Angelas University, Sligo