Latest data from Kantar shows that take-home grocery sales in Ireland jumped a record 25.4% during the 12 weeks to 17 May. This reflected both the pre-lockdown surge in shopper spend and the eight weeks of stay-at-home advice from Government, bringing almost all meals into the home.
However, while the growth of take-home grocery sales is strong, the research group highlighted that the overall picture for some supermarkets will be less positive as these gains are offset by falling spend on on-the-go meals, drinks and snacks.
Emer Healy, retail analyst at Kantar, commented: “As lockdown continues, households with more mouths to feed at home have made their way through supplies and are now starting to top up depleted store cupboards. In accordance with government guidelines, we’ve seen shoppers limiting their time spent out of home by making fewer, larger trips at local stores, visiting grocers two fewer times over the past 12 weeks than they did in this period last year.”
Fastest-growing retailer SuperValu claimed the largest market share for the second month in a row after seeing its sales rise by 32.7%. Kantar said the SuperValu’s locally-focused store estate helped it benefit from people shopping closer to home with it welcoming 64,000 additional shoppers through its doors during the period.
Tesco also recorded strong sales growth with its typically larger stores allowing it to capitalise on the increase in big trolley shops. The grocer’s sales grew by 23.7% to hold 21.8% of the market.
Dunnes also gained from shoppers spending more in store (an extra €10.39 per trip compared with last year), and it recorded growth of 18%. However, this was slightly behind the market, linked partly to Dunnes not having a direct online grocery offer.
Lidl benefited from its Dublin stronghold to boost sales by 30.5% and held its market share at 12.0%, while Aldi performed strongest in the south of the country, growing overall sales by 20.8% to hold an 11.7% share.
Lockdown has also continued to drive up online grocery shopping, and sales through digital platforms increased by 76% year-on-year. Healy commented: “Demand for online groceries has soared over the past few months and 15% of Irish households received at least one online delivery over the latest 12 weeks – a significant increase from 9% last year.
“This sudden surge in demand meant that the retailers had to act quickly to increase their online capacity, and have been rightly praised for extending their services to those who need them most.”
Meanwhile, despite the circumstances, people appear to be trying to lift their spirits by eating and drinking in the sunny spring weather. Friday 1 May, the day before the early May bank holiday weekend, was worth €52.8m as consumers prepared for a weekend of sunshine. The holiday, coupled with a month of warm temperatures, meant that alcohol sales grew by 93% over the latest four weeks. The barbecue weather also meant shoppers spent an additional €3.8m on sausages and burgers, whilst ice cream sales rose an extra €5.9m.
Meanwhile, Kantar’s data showed that grocery inflation in Ireland now stands at 2.3%.
NAM Implications:
- Key for suppliers to compare their sales with specific retailers…
- …and identify potential opportunities via improved availability…
- …especially online.
