Consumers switch to discount supermarkets for Christmas

UK supermarket chain Tesco saw its market share fall by 6.2 per cent over Christmas, as consumers diverted their wallets to low cost discounters Aldi and Lidl.

The two German chains reported double digit growth in the 12 weeks ending January 5th,when compared with the same period in 2013, with Aldi enjoying a 20.1 per cent boost to grow its market share to 7.1 per cent. Lidl also attracted shoppers in larger numbers, with the chain increasing its market share by 12.2 per cent to 6.4 per cent, according to figures from Kantar Worldpanel.

SuperValu was another winner over Christmas, attracting 43,000 more households to come and shop over the holidays.

"This helped the retailer post market-beating sales growth of 1.3 per cent and edged its market share above 20 per cent for the first time since October 2009. Alcoholic drinks are an important part of the Christmas shop and SuperValu has grown its take home sales by 10 per cent in this category, which has helped it perform ahead of the market," said David Berry, commercial director at Kantar Worldpanel.

Reacting to the figures Martin Kelleher, managing director of SuperValu, said that the supermarket has grown by 30 per cent over the last 10 years, with over two million transactions per week and annual retail sales of just over € 2 billion.

“Our unique selling point is our support for Irish suppliers. SuperValu is the biggest supporter of the Irish food industry and it is our policy to source Irish whenever possible. SuperValu purchases goods worth over €1.6 billion from Irish suppliers, helping to protect almost 30,000 Irish jobs in the farm, food and retail sectors. We’re also the only retailer whose fresh meat is 100% born, bred and reared in Ireland.”

Despite a decline in market share Tesco is still the largest supermarket in Ireland, with market share of 26.2 per cent, and according to Mr Berry its sales decline is beginning to show signs of slowing, with a slight improvement from -6.5 per cent in October to -6.2 per cent.

Sales at Dunnes Stores dropped by 0.9 per cent compared with last year, resulting in a slight dip in market share to 23.9 per cent, following four months of positive sales growth for the retailer.

Superquinn also saw sales fall, with its market share declining by 6.4 per cent to 5.2 per cent. Its 24 stores are due to become part of the SuperValu brand, resulting in a network of 224 stores.

Consumers also flocked to vegetables over Christmas, thanks to price promotions, with shoppers buying 4 per cent more compared with last Christmas, despite spending 10 per cent less.