Irish market impacted by local lockdowns

Date : 22 September 2020

Lucy Ingram

Retail Analyst

With shopping habits starting to return to normal market growth once again slowed in this period, with sales of +13.7% for the 12 weeks to 6th September, according to Kantar. This compares to the 18% growth seen in the previous reporting period.

The picture however starts to change when looking at the past four weeks, where local lockdowns have had an impact, causing additional spend. We look at this in more detail, including the performance of key retailers in the market.

Shopping habits show a mixed picture due to the ever changing nature of COVID

Over the 12 week reporting period shoppers visited stores more frequently, particularly in the past four weeks when they visited stores on average 19 times, a closer frequency to what was seen pre-pandemic.

Although this appears to show shopping habits are returning to normal, there was an additional €19m spent, indicating that local lockdowns have caused shoppers to eat more at home and stock up on essentials. This pattern is expected to continue as local lockdowns increase.

Strongest performance continues to come from Lidl

Once again Lidl was the fastest growing retailer, at 21.2%. This was a slight slowdown from the previous period where sales were +25%.

All the major retailers saw double digit growth over the 12 weeks, with SuperValu seeing the second highest growth with sales of +17.2%. This gave it the biggest share of the market at 22.1%, for the sixth month in a row.

After a successful back to school period Dunnes now holds the second largest share of the market, at 21.3%.

Online rapid growth continues

The last four weeks once again saw record breaking online sales, with +121.7% growth, equating to +€72.9m to the total market. The channel continues to attract new shoppers, accounting for close to a quarter of online spend.

With the demand for online delivery showing no signs of slowing down, and the growing probability of more local lockdowns, we are increasingly seeing retailers adapt their propositions to reflect the growing demand for online across all markets. In Ireland, Tesco is trialling drone deliveries in a store in Galway. With delivery time in as little as 30 minutes this offers a fast, convenient way of delivering to shoppers.

Detailed results

Total take home grocery consumer spend 12 weeks to 8th September 2019 12 weeks to 6th September 2020 % Change in value sales
Total outlets 100% 100% 13.7%
Total multiples 89.5% 89.7% 13.9%
Dunnes 22.6% 21.3% 9.0%
Tesco 21.4% 21.0% 11.7%
SuperValu 21.4% 22.1% 17.2%
Aldi 12.6% 12.6% 13.8%
Lidl 11.9% 12.7% 21.2%
Other outlets 10.5% 10.3% 11.9%

Source: Kantar

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