Business

'Big three' dominate grocery market share in north - but Lidl muscling in

Low-cost chain Lidl is now commanding a 6 per cent share of the grocery market in Northern Ireland for the first time, according to Kantar
Low-cost chain Lidl is now commanding a 6 per cent share of the grocery market in Northern Ireland for the first time, according to Kantar Low-cost chain Lidl is now commanding a 6 per cent share of the grocery market in Northern Ireland for the first time, according to Kantar

GROCERY sales in Northern Ireland grew a further 1.4 per cent in the 52 weeks to June 16 as higher average prices and smaller, more frequent grocery trips buoyed the market.

And Lidl has broken the 6 per cent market share threshold for the first time following growth of 7.6 per cent over the past year, the latest monthly report from analysts Kantar reveals.

“Lidl’s success is largely thanks to existing shoppers putting more items in their baskets each time they shop,” said Douglas Faughnan, consumer insight director at Kantar.

“The average Lidl trolley now contains two more items than it did last year, helping to drive volume growth of 6.7 per cent.”

He added: “With sales growth of 1.0 per cent, Tesco remains the largest retailer in Northern Ireland, accounting for 35.1 per cent of the market. Central to Tesco’s dominance is the fact that more than nine out of 10 households have shopped there over the past year.

“With modest growth of 0.1 per cent and 0.2 per cent, Sainsbury’s and Asda remain some distance behind Tesco, holding market shares of 17.1 per cent and 16.9 per cent respectively.

“Sainsbury’s growth has largely been thanks to increased footfall – the number of households shopping at the retailer is up by 5.8 per cent since last year. Meanwhile, Asda’s growth is predominantly down to its existing shopper base spending more.”

The grocery market in the Republic remained buoyant in the face of inclement weather, up by 4.6 per cent over the last 12 weeks, though hot weather categories which experienced a surge in popularity this time last year have dipped in line with the falling temperatures.

Kantar figures show sales of ice cream and sun care products declined by 9.2 per cent and 38 per cent respectively on last year. Drinks sales have also experienced a slowdown, with cider in particular growing by just 0.1 per cent this year compared to 14 per cent last summer.

Dunnes grew its market share in the south by 7.2 per cent, underpinned by a substantial increase in spend per buyer, while Aldi and Lidl’s rises shows no sign of abating as they registered growth of 13.3 per cent and 5.8 per cent respectively over the period (Aldi now accounts for 12.3 per cent of overall grocery sales in Ireland.