Business

Shoppers splash out at Easter as grocery market deflation continues

Lidl and Tesco were the big winners over Easter
Lidl and Tesco were the big winners over Easter Lidl and Tesco were the big winners over Easter

LIDL and Tesco each enjoyed an uplift in grocery market share in Northern Ireland over the key Easter period according to figures from Kantar Worldpanel covering the 12 weeks to April 23.

The numbers reveal that deflation is limiting growth in the grocery market as supermarket prices continue to fall.

Having slipped into deflation for the first time in almost two years in the last period, the grocery market grew by just 1.7 per cent over the period.

Tesco remains the north's largest grocer, capturing 34.9 per cent of grocery sales. Its share was up 2.9 per cent on the same quarter in 2016.

Lidl also attracted more shoppers through its doors, with its share rising 4.9 per cent. It now commands 5.3 per cent of the market in the north.

Asda added 0.3 per cent and its share is 17.3 per cent, putting it a shade ahead of Sainsbury (17.2 per cent).

In the island as a whole, SuperValu kept hold of the title of Ireland’s largest supermarket, while Dunnes Stores posted the strongest sales growth.

The Kantar figures also reveal that the proportion of goods bought on promotion has fallen by 7 percentage points in the last three years as retailers switch towards everyday lower prices.

David Berry, director at Kantar Worldpanel, said: “In recent years we have seen a definite shift away from promotional deals towards more consistent, lower prices on everyday items.

"Just over a quarter of all goods are now bought on promotion – down from 33 per cent in 2014. With the rate of deflation in the grocery market falling even further, we expect to see this trend stick around.”