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Shoppers offset deflation effects as grocery market increases by €80m

The Irish grocery market grew at the fastest rate since January in the 12 weeks to June 18, as shoppers buying more offset the impact of deflation.

SuperValu remains, just, in the top spot as the biggest grocery chain in terms of market share, according to the latest figures from Kantar Worldpanel. Tesco is challenging for number 1 ranking, with a fraction of a percentage point separating the two.

The latest 12-week period, which included Easter. saw the sector grow by €80m, a 3.5pc increase year-on-year, according to the latest Kantar Worldpanel data. While Musgrave-owned SuperValu held on to the top spot, Tesco is growing ahead of the market, with sales up 3.8pc in the 12 weeks.

“SuperValu can’t remain complacent,” said Cora Campbell, consumer insight director at Kantar Worldpanel. “With the battle for the top spot hotly contested over recent years and only 0.7 percentage points separating the top three retailers, there can’t be any guarantees that you’ll stay in position.”

Despite a drop in shopper numbers, Dunnes Stores remains the fastest growing big retailer, increasing its value of sales by 4.5pc. Dunnes customers are shopping more often and spending an additional 10pc on average, increasing their average spend in the retailer by €44.50, according to the latest data.

Meanwhile discount retailers Lidl and Aldi are holding market shares of 11.7pc and 11.2pc respectively.
During the period, Lidl’s growth accelerated to 3.3pc, while Aldi was just ahead with 3.7pc growth. The survey found that overall sales of private label goods are up 4.2pc, accounting for 54pc of grocery spend, the highest proportion since March this year. Price deflation, which has held steady at -0.2pc during the period, has been offset by an increase in overall volume sales of 4.6pc.

Last month Tesco announced that it is to buy out full ownership of Tesco Mobile Ireland.
Up to now, 3 Ireland owned a 50pc stake in the ‘virtual’ operator business, which has grown to over 6pc of the Irish mobile market. Details of the deal were not disclosed.

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