Lidl: increased market share

Dunnes and discount retailers Lidl and Aldi have boosted their share of the grocery market as customers switch to lower price brands.

New research from TNS Worldpanel show Dunnes saw its market share for the three months ending 2 November 2008 increase from 23.7% to 24.6% compared to the same period last year while the discounters increased their market share from 6.9% to 7.4% during the same time.

Tesco and Superquinn were the big losers, with Superquinn's market share falling to 7.5% from 8% and market leader Tesco seeing its share of the grocery business fall from 26.4% to 25.8%.

The other major winners are Asda and Sainsbury's who have seen their share of the grocery market in the Republic of Ireland increase more than 150% in the last year as shoppers move across the border to take advantage of cheaper prices, lower Vat rates and the sterling-euro differential. Their share of the market stands at 1.6% compared to 0.6% last year.

SuperValu has seen its market share drop from 20.3% to 19.9% and symbol groups have seen sales fall from 6% to 5.7%. The market share of other outlets is down from 8.1% to 7.5%.

Worryingly for the grocery retailers in the Republic, the figures show that 6.4% of shoppers had bought in the North in the four weeks leading up to 2 November. The numbers are particularly striking from the Connacht, Cavan, Monaghan and Donegal area where almost one in four households bought groceries in the North in those four weeks.

To take advantage of the numbers travelling, the Sunday Tribune has learned that Asda has contacted property agents in recent weeks to tell them they want to open in Newry. Up to 40% of Sainsbury's customers in the town are coming from the south, according to a report released last week by Savills.

TNS Worldpanel's figures do not include the convenience market and are solely based on take-home goods. Their figures are based on 3,000 households who scan everything they buy on a weekly basis on their return home. The households chosen reflect national statistics in terms of demographics and geography.

The figures show that despite the economic downturn the average household grocery spend increased from €57 per week in September to €91 in October.