Business

Northern Ireland's grocery market continues to grow - and prices at the tills 'are coming down'

Visits to supermarket grocery aisles in Northern Ireland are up - and prices are down - according to separate reports
Visits to supermarket grocery aisles in Northern Ireland are up - and prices are down - according to separate reports Visits to supermarket grocery aisles in Northern Ireland are up - and prices are down - according to separate reports

THE Northern Irish grocery market has continued to grow, with overall sales up 1.0 per cent during the 52 weeks to August 11, figures from consumer data firm Kantar reveal.

Shoppers are making smaller but more frequent trips, on average heading to the shops nearly 12 extra times during the year.

But while volume sales continue to decline, falling by 0.5 per cent, a 1.6 per cent increase in prices is driving growth in the overall market.

According to Charlotte James, consumer insight director at Kantar, its Tesco which is again leading the way for market share across Northern Ireland

She said: “Its market share held steady at 35 per cent as it was once again the only big three retailer to achieve growth, increasing sales by 0.3 per cent over the year.

“Tesco is following a similar trend to the overall market, with the average number of items bought per shopper down by 2.5 per cent.”

She added: “Sales at Sainsbury’s and Asda declined by 0.6 per cent and 0.8 per cent respectively. Sainsbury’s attracted more customers, with 70 per cent of Northern Irish households shopping at the retailer over the year, but smaller baskets and less frequent trips have driven an overall decline in sales.

“At Asda, shoppers visiting more regularly failed to offset smaller basket sizes and a fall in customer numbers.

“Lidl is the only retailer to buck the trend and increase its market share this period. It successfully increased its customers’ basket sizes to an average of 15 items per trip, compared to 14 this time last year.

“While Lidl has experienced a fall in shopper numbers and frequency of trips, but overall volumes are up 5.7 per cent.”

Meanwhile a separate index from the British Retail Consortium revealed that overall UK shop prices were failing at their fastest rate since June last year.

And this, according to the organisation's regional head Aodhán Connolly, is a timely fillip for consumers.

He said: “Falling prices at tills is good news for Northern Ireland shoppers, and will hopefully tempt more folk onto our high streets and retail destinations.

“Shoppers are benefiting from intense competition amongst retailers which is helping to keep prices on shop shelves down, welcome news at a time when household finances overall continue to be under strain due to recent rises in domestic and minimum pension contributions.

“The UK government can help retailers keep shop prices down by securing a lasting tariff-free trade deal with the EU that ensures access to both the EU and GB markets.

“But we still need Northern Ireland ministers back working to play their part by keeping down the cost of living and taking mission critical decisions such as reform of business rates.”