SuperValu sharpens its focus on Dublin

If SuperValu's new Dublin stores were people they would probably be living in apartments in Rathmines and hanging out in Flannery's bar.

That’s what people from “down the country” who move to Dublin tend to do at first, until they get to know the place. Then, before too long, they’ve memorised all the Luas stops and are swanning about the city like natives.

SuperValu, too, is learning its way around Dublin. The chain, well-entrenched in the rest of the State, is gearing up for a big push to attract the capital’s shoppers in the run-up to Christmas.

When Musgrave, SuperValu's owner, paid close to €250 million for 24 Superquinn stores in 2011, the 18 Dublin outlets were the real attraction. It already had about 25 franchised outlets in the capital, but they were mostly smaller than the average in its 190-strong network of independently-owned stores.

The chain, which pushes a value-driven, community-attuned offering, was desperate for a larger-format foothold in the city. For the first time Musgrave, a wholesaler, also became a substantial operator of SuperValu stores.

In February it ditched the Superquinn name and relaunched the shops as SuperValu. The transition has not been straightforward for it in Dublin, however.

Figures this week from Kantar Worldpanel showed that although SuperValu held its share of the national market steady at near 25 per cent, average spend dropped by €16, as it replaces higher- priced Superquinn lines with own brands.

It is grappling to retain customers in Superquinn’s traditional heartlands, leafy areas such as Blackrock and Knocklyon. The sort of places where they like Himalayan salt on their couscous. They don’t often go for that sort of thing in Castlerea or Ballyhaunis.

There are signs SuperValu is starting to adapt, however.

It will make a big media splash this Christmas, with an emphasis on outlets, such as Sky, that have a bias towards the capital. It has also pioneered a clever display template for its Food Academy artisan suppliers at Blackrock, which it will selectively roll out at some of the well-heeled ex-Superquinns in Dublin. SuperValu is also rumoured to be working on upgrading its meat offering to intensify the “butcher’s feel” – a very Superquinnesque move.

This month’s group-wide French wine sale, using labels familiar to Superquinn shoppers, is a clear attempt to stay connected with the city’s middle classes.

The nascent economic recovery may also smooth SuperValu’s advertising message, based on community and softer stuff like that. The austere discounters will have to adapt here too.

SuperValu will probably soon be the biggest grocer in the State, as Tesco’s share could continue in freefall for a while yet.

But if it really wants to be considered number one it must conquer Dublin, the engine room of the recovery.

The bright lights of the city beckon.