Ireland grocery market sees fastest growth since first lockdown

Lucy Ingram
Retail Analyst
@RetailAnalysis

Date : 17 November 2020

Growth in the Irish grocery market accelerated to +14.4% in the 12 weeks to 1st November, according to the latest results from Kantar. As the nationwide lockdown came into place growth continued to rise, reaching +18.8% in the last four weeks. All retailers saw an increase in sales compared to the previous reporting period, when overall market growth was +11.9%.

Growing basket size and moving to online

The growth amounted to a spend of over €1bn, €161.6m more than last year, and the biggest month since the first lockdown in June. Growth was fastest in Dublin during this time.

For some shoppers the changes in restrictions led to purchasing more on average per trip. Tesco saw customers buying an extra three items on average per shop, this was the biggest volume increase from all the top retailers.

For other shoppers the restrictions meant a move into online. Sales in the channel rose 90% in the past four weeks, an increase on the 75% growth we saw in the previous four weeks.

Lidl sees fastest growth

Discounter Lidl continued to be the fastest growing retailer, with sales at +21.1%. Its share is now 12.7%.

Although Aldi also saw strong growth, at +11.7%, this was below the market.

Dunnes grows market share

Dunnes grew its market share to 22.2%, from 21.9% in the previous reporting period, when it held equal share with SuperValu. This was driven by strong sales in Dublin, where shoppers spent an additional €38.8m over the past 12 weeks.

SuperValu sees strong growth and begins to roll out its drive-through service

SuperValu was one of the three retailers to grow faster than the market in this period (alongside Lidl and Tesco), with sales +18%.

During this time the retailer began rolling out its drive-through service to 135 stores. The updated service will have special drive-through booths, in the style of the model used by fast-food chains. Customers will park in designated bays and have their groceries placed in the car boot by staff, meaning a completely contact-free service.

Drive-through offers a great way for shoppers and staff to feel safe. With the pandemic continuing to impact shoppers behaviour and their growing preference for online shopping remaining high, we expect to see more retailers make changes to how they operate and the services they offer.

Detailed results

Total take home grocery consumer spend 12 weeks to 6th September 2019 12 weeks to 4th October 2020 % Change in value sales
Total outlets 100% 100% 14.4%
Total multiples 89.7% 90.1% 15.0%
Dunnes 22.9% 22.2% 10.9%
Tesco 21.1% 21.2% 14.8%
SuperValu 21.2% 21.9% 18.0%
Aldi 12.5% 12.3% 11.7%
Lidl 12.0% 12.7% 21.1%
Other outlets 10.3% 9.9% 9.3%

Source: Kantar

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