SuperValu breathes down Tesco’s neck after Superquinn rebrand

Tesco is perilously close to losing its pre-eminent position in the Irish supermarket sector with the latest figures from retail analysts Kantar Worldpanel indicating that its market share has fallen again while both Aldi and Lidl outperform the market.

The research published this morning, shows that Aldi and Lidl are growing while the market as a whole is shrinking. The German discounters have seen their market share increase by 1.4 and 0.8 percentage points respectively.

SuperValu is now the State’s Ireland’s second largest grocer after last month’s rebranding of 24 Superquinn stores to SuperValu’s fascia. The supermarket share figures cover the 12 weeks ending up to March 2nd and show that it now accounts for just over 25 per cent of the total market. Tesco remains the most popular retailer although the gap between first and second is now little more than 1 per cent.

"Bringing 24 Superquinn stores under the SuperValu banner has enhanced the retailer's position as a major player in the grocery market," said Kantar Worldpanel's commercial director David Berry. "SuperValu now accounts for 25.3 per cent of Irish shoppers' grocery market spend, just 1.1 percentage points behind Tesco. Its sales have remained broadly in line with the market, which shows that it has been able to retain its market share while acquiring assets."

He said the main challenge for SuperValu was to convince previously loyal Superquinn shoppers of the merits of its brand and “ultimately hold onto their custom”.

Although the overall grocery market has declined for the fifth successive month, Aldi and Lidl continue to impress with retailers are delivering double digit sales growth and increasing their overall market shares by 1.4 and 0.8 percentage points respectively.

"Over the past three years Aldi and Lidl have captured a combined 3.8 share points from the competition, and have grown sales by 37 per cent in an overall grocery market which has grown by just 1 per cent," Mr Berry said. "Conversely, Tesco and Dunnes have both experienced declines in market share and actual sales as the result of the pressure exerted by the increasingly competitive market place."

Last month saw the grocery market’s weakest performance since September 2011 with sales declining by 0.6 per cent. Falling inflation has played a significant part in this as vegetables and bread, two important staple items, are now cheaper than they were last year.

Grocery inflation stands at 1.7 per cent for the 12 week period ending March 2nd down from 2.9 per cent over the previous 12 weeks and the lowest level since April 2012.