Good Year For SuperValu; Planning To Open Three New Stores

Leading Irish grocery chain SuperValu has revealed that its sales rose 2.4% to €2.67bn last year, with plans to continue its expansion in 2017.

The Musgrave-owned retailer said its focus on “fresh, quality Irish produce with a tailored, local offer in every store” continued to act as a core driver of its performance. Meanwhile, its ‘Health & Wellness’ range, introduced in 2015, delivered sales of over €36m last year, underlining consumers increasing focus on health and whole foods.

SuperValu also expanded its ‘Real Rewards’ loyalty scheme last year with over 1 million members now signed up. The scheme has six national partners including Aer Lingus, Bank of Ireland and Electric Ireland, with plans for further partnerships this year.

Meanwhile, online shopping was another key sales driver for the business, growing by 22% in 2016. SuperValu said the shift to mobile was a key trend, with visits from customers browsing its website on smartphones up by 180%.

SuperValu ended the year with 219 outlets and plans to open three new stores in 2017 as part of a €35m investment, which is also aimed at revamping existing sites.

Martin Kelleher, Managing Director of SuperValu, hailed the chain’s record sales last year and pledged to continue to invest in new product ranges and services.

He added: “As Ireland’s leading food retailer, we pride ourselves on delivering an unrivalled shopping experience with a unique and tailored offer of locally-sourced, quality Irish produce complemented by in-store experts. SuperValu independent retailers continue to set us apart and drive the success of the brand.”

75% of everything on SuperValu’s shelves is sourced in Ireland with Kelleher commenting: “As the number one supporter of the Irish agri-food industry, SuperValu sources from over 2,200 Irish suppliers – more than any other grocery retailer in the Irish market – equating to an annual economic contribution of €2.19bn.”

Earlier this month, figures from Kantar Worldpanel for the 12 weeks ending 29 January 2017 showed Dunnes Stores had overtaken SuperValu as the grocery retailer with the largest market share in Ireland.

Dunnes took 22.7% of the market during the period, only the second time it has managed to reach the top, having first held this position in November last year. Supervalu was second with a market share of 22.5%, whilst Tesco held spot on 22.4%.

NAM Implications:
  • Where at: Essentially, store-level assortment combined with local sourcing and trending themes such healthy eating, all at acceptable prices has to be a way forward in unprecedented times.
  • Where headed: Providing supply chain efficiencies can be optimised, this stance has to represent an advantage over Tesco.
  • Effect on you: Suppliers that can work profitably within this demand-template have to benefit from SuperValu partnerships…
  • Action: Time for suppliers to decide the business they are in…