Grocery growth slows slightly as shoppers adapt to new normal

THE latest figures from Kantar show take-home grocery sales in Ireland increased by 17.2% in the 12 weeks to April 19, as shoppers adjusted to life under lockdown. While grocery sales are strong, retailers will have felt the effects of social distancing restrictions on food-to-go purchasing and other non-grocery categories. “It’s been a challenging few weeks and we’ve all been grateful for how hard the grocery retailers have been working to keep us fed and watered,” said David Berry, Managing Director - Ireland at Kantar. “In the absence of dinners with friends and lunch on the go, many more meals are being eaten in the home and grocery sales have risen accordingly. But social distancing means people are less likely to be buying categories like clothes, food on the go, and general merchandise, which means, for some retailers, the overall picture will be more modest.” In the most recent four weeks, year-on-year grocery growth slowed slightly from March levels to 22.5% and, as people followed Government advice to stay at home, the average household visited the grocers 19 times, two times fewer than the same period last year. “In an effort to get everything they need in one go and cater for all the additional meals and snacks eaten at home, shoppers are adding an extra four items to their baskets each visit, increasing their monthly grocery bill by €118 on average,” Berry revealed. “The change in shopper behaviour adds up to an extra €440m spent on grocery in the past 12 weeks, but this additional spend is impacting individual retailers in different ways. Before lockdown, Dunnes customers already spent 80% more than the average shopper each visit at €43.80, which means the retailer has experienced less of a jump in spend per trip than those grocers starting from a lower base. Dunnes is growing slightly behind the rest of the market as a result, but these are extremely narrow margins and only 0.5 percentage points separates the three retailers at the top of the table.” Lidl was the fastest growing of all the retailers during the full 12-week period, boosting sales by 22.1% and increasing its market share to 12%, while Aldi grew by 15.6% to hold an 11.8% share. In the shorter term, SuperValu’s large store estate saw it benefit from shoppers choosing to visit outlets closer to home, and it was the only retailer not to experience reduced footfall during the past four weeks as it took the number one position in the market. A statement from SuperValu said: “This is testament to the remarkable effort and dedication of our independent retailers and their staff, as well as the implementation of protective measures such as plexiglass at tills and increased contactless payment limits for staff and customers at a very early stage during the Covid-19 crisis. Additionally, our robust supply chain ensured that shelves remain fully stocked from the outset of the crisis. These measures mean that shoppers can always buy groceries without making multiple trips.” Demand for online grocery has soared as people try to limit their contact with others and 10% of Irish households received an online grocery delivery in the past four weeks compared with 6% last year. “An additional €20.6m was spent online this month and it’s heartening that the number of retired people getting groceries delivered has doubled in the past 12 weeks, indicating the take up of delivery slots among more vulnerable groups,” said Berry. Consumers are looking for ways to pass the time during lockdown, with home baking and cooking meals from

scratch on the rise. “People are turning to cooking from scratch as a good way to keep their families entertained at home. Sales of ready meals are in decline but 50% of Irish households bought baking supplies in the past four weeks, with flour up 52% and sugar up 43%. Those shoppers trying to recreate their favourite takeaway dishes have also boosted sales of ethnic ingredients by 41% and herbs and spices by 61%,” Berry noted. “There are signs that people are trying not to let the lockdown dampen their spirits. While beer gardens and

MARKET SHARE - TOTAL GROCERY

Includes expenditure across Food, Beverages, Alcohol, Household and Health & Beauty categories

Total Outlets

Total Multiples Dunnes Tesco SuperValu Aldi Lidl

Other Outlets**

Total Take Home Grocery - Ireland Consumer Spend 12 Weeks to 24/04/19 12 Weeks to 19/04/20 % Change in value sales %* %* % 100.0% 100.0% 17.2%

88.8% 89.3% 17.8% 22.2% 21.7% 14.4% 21.8% 21.7% 16.7% 21.4% 22.2% 21.3% 11.9% 11.8% 15.6% 11.5% 12.0% 22.1% 11.2% 10.7% 12.6%