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Grocery Retailing – Multiples vs Discounters - Ireland - December 2015

“The grocery retailing sector in Ireland continues to be driven by price as supermarkets compete to offer the best value to drive footfall and market share. However, the deep discounting over the last 18-24 months has dictated grocery retailing to the point where supermarkets have seen their points of differentiation eroded. As such, moving away from purely price-based competition and creating a new immersive shopper experience will help supermarkets stand out from rivals and re-establish a unique proposition.”
– James Wilson, Research Analyst

This report answers the following questions:

  • What types of products are Irish consumers buying from the discounters?
  • How much are Irish consumers spending on groceries?
  • How have Irish consumers’ shopping habits changed?
  • Where are Irish consumers doing their main grocery shopping?

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Table of contents

  1. Overview

    • What you need to know
      • Issues covered in this report
      • Executive Summary

          • The market
            • Figure 1: Indexed estimated total retail sales of own-label groceries, NI and RoI, 2010-20
          • Forecast
            • Figure 2: Indexed estimated total grocery retail sales, NI and RoI, 2010-20
          • Market factors
            • Food price declines welcomed by Irish consumers
              • NI consumers spend £40-60 on groceries per week; RoI consumers spend €60-119
                • Consumers feeling the economic recovery in RoI while NI consumers seeing finances squeezed
                  • Discounters growing store numbers across Ireland
                    • Grocery retailers adopting the ‘Living Wage’
                      • Companies and brands
                        • The consumer
                          • Women claim to be the main grocery shoppers, men share responsibility equally
                            • Figure 3: Who is responsible for grocery retailing in a household, NI and RoI, September 2015
                          • Irish consumers prefer to buy groceries in-store
                            • Figure 4: How consumers do their main grocery shop, NI and RoI, September 2015
                          • Tesco most popular supermarket for main grocery shopping…
                            • Figure 5: Stores that consumers do their main grocery shopping with (in-store), NI, September 2015
                            • Figure 6: Stores that consumers do their main grocery shopping with (in-store), RoI, September 2015
                          • …while Lidl preferred for top-up shopping
                            • Figure 7: Stores that consumers do their top-up shopping with (in-store), NI, September 2015
                            • Figure 8: Stores that consumers do their top-up shopping with (in-store), RoI, September 2015
                          • Fresh fruit and vegetables the most popular food items at Aldi and Lidl
                            • Figure 9: Types of food and drink grocery products bought at Aldi and Lidl in the last three months, NI and RoI, September 2015
                          • Personal care is the top non-food category at Aldi and Lidl
                            • Figure 10: Types of non-food grocery products bought at Aldi and Lidl in the last three months, NI and RoI, September 2015
                          • Consumers not able to buy all the groceries they need from discounters
                            • Figure 11: Agreement with statements relating to purchasing groceries from discount retailers, NI and RoI, September 2015
                          • What we think
                          • Issues and Insights

                            • What types of products are Irish consumers buying from the discounters?
                              • The facts
                                • The implications
                                  • How much are Irish consumers spending on groceries?
                                    • The facts
                                      • The implications
                                        • How have Irish consumers’ shopping habits changed?
                                          • The facts
                                            • The implications
                                              • Where are Irish consumers doing their main grocery shopping?
                                                • The facts
                                                  • The implications
                                                  • The Market – What You Need to Know

                                                    • Grocery sales continue recovery in 2015
                                                      • Food price deflation entrenched in Ireland
                                                        • Personal finances impacting weekly grocery expenditure
                                                          • Growth of discounters putting pressure on traditional supermarkets
                                                            • ‘Living Wage’ the new frontier in grocery retailing
                                                            • Market Size and Forecast

                                                                • Grocery sales increase in 2015
                                                                  • Figure 12: Estimated total grocery retail sales, IoI, NI and RoI, 2010-20
                                                                • Continued expansion of discounters to drive growth in grocery sales
                                                                  • Figure 13: Indexed estimated total grocery retail sales, NI and RoI, 2010-20
                                                                • Own-label sales grow as supermarkets continue promoting and investing in ranges
                                                                  • Figure 14: Estimated total retail sales of own-label groceries, IoI, NI and RoI, 2010-20
                                                              • Market Drivers

                                                                • Loss leaders continue to drive food price deflation in 2015
                                                                  • Figure 15: Consumer price index vs food inflation, UK (including NI), 2011-15
                                                                • Food prices also falling in RoI
                                                                  • Figure 16: Consumer price index vs food inflation, RoI, 2011-15
                                                                • Average grocery spend £40-60 in NI and €60-119 in RoI
                                                                  • Figure 17: Average amount that consumers spend each week for household groceries, NI, September 2015
                                                                  • Figure 18: Average amount that consumers spend each week for household groceries, RoI, September 2015
                                                                • RoI consumers see rise in spending power
                                                                  • Figure 19: Financial health of Irish consumers, RoI, October 2014-September 2015
                                                                • Financial struggles continue for NI consumers
                                                                  • Figure 20: Financial health of Irish consumers, NI, October 2014-September 2015
                                                                • Aldi and Lidl grow store presence in Ireland
                                                                  • Lidl the first to adopt ‘Living Wage’ in RoI and NI
                                                                    • Online grocery market offers potential for new entrants
                                                                    • Companies and Brands – What You Need to Know

                                                                      • Aldi
                                                                        • Asda
                                                                          • Dunnes Stores
                                                                            • Lidl
                                                                              • Marks & Spencer
                                                                                • Sainsbury’s
                                                                                  • SuperValu
                                                                                    • Tesco
                                                                                    • Competitive Strategies – Key Players

                                                                                        • Aldi
                                                                                          • Sales and growth plan
                                                                                            • Marketing activities
                                                                                              • Asda
                                                                                                • Sales and growth plan
                                                                                                  • Marketing activities
                                                                                                    • Dunnes Stores
                                                                                                      • Sales and growth plan
                                                                                                        • Marketing activities
                                                                                                          • Lidl
                                                                                                            • Sales and growth plan
                                                                                                              • Marketing activities
                                                                                                                • Marks & Spencer
                                                                                                                  • Sales and growth plan
                                                                                                                    • Marketing activities
                                                                                                                      • Sainsbury’s
                                                                                                                        • Sales and growth plan
                                                                                                                          • Marketing activities
                                                                                                                            • SuperValu
                                                                                                                              • Sales and growth plan
                                                                                                                                • Marketing activities
                                                                                                                                  • Tesco
                                                                                                                                    • Sales and growth plan
                                                                                                                                      • Marketing activities
                                                                                                                                      • The Consumer – What You Need to Know

                                                                                                                                        • Women claim to be mainly responsible for grocery shopping
                                                                                                                                          • Men more likely to buy groceries online
                                                                                                                                            • Irish consumers’ shopping habits moving to an ‘as needs’ basis
                                                                                                                                              • Fresh goods and personal care the top categories at Aldi and Lidl
                                                                                                                                                • Improvements in product quality noticed at discounters
                                                                                                                                                • The Consumer – Who Shops for Groceries?

                                                                                                                                                    • Irish women the main grocery shoppers in Ireland
                                                                                                                                                      • Figure 21: Who is responsible for grocery retailing in a household, NI and RoI, September 2015
                                                                                                                                                      • Figure 22: Who is mainly/wholly responsible for grocery retailing in a household, by gender, NI and RoI, September 2015
                                                                                                                                                    • Early Millennials least likely to grocery shop
                                                                                                                                                      • Figure 23: Who is mainly/wholly responsible for grocery retailing in a household, by age, NI and RoI, September 2015
                                                                                                                                                  • The Consumer – How do Irish Consumers Shop?

                                                                                                                                                      • Irish consumers prefer in-store grocery shopping
                                                                                                                                                        • Figure 24: How consumers do their main grocery shop, NI and RoI, September 2015
                                                                                                                                                      • Online grocery retailing skewed towards younger generation
                                                                                                                                                          • Figure 25: Consumers who have purchased groceries online, by age, NI and RoI, September 2015
                                                                                                                                                        • Parents favour online grocery shopping
                                                                                                                                                            • Figure 26: Consumers who have purchased groceries online, by presence of children in the household, NI and RoI, September 2015
                                                                                                                                                        • The Consumer – Where Do Irish Consumers Do Their Main Grocery Shopping?

                                                                                                                                                            • NI consumers visiting Tesco for main grocery shopping
                                                                                                                                                              • Figure 27: Stores that consumers do their main grocery shopping with (in-store), NI, September 2015
                                                                                                                                                            • Women show a preference for shopping at Tesco
                                                                                                                                                              • Figure 28: Consumers who have visited Tesco to do their main grocery shopping, by gender, age and social class, NI, September 2015
                                                                                                                                                            • Tesco preferred for main grocery shopping in RoI, Aldi a close second
                                                                                                                                                              • Figure 29: Stores that consumers do their main grocery shopping with (in-store), RoI, September 2015
                                                                                                                                                            • Late Millennials doing main grocery shopping at Tesco
                                                                                                                                                              • Figure 30: Stores that consumers do their main grocery shopping with (in-store), by gender, age and social class, RoI, September 2015
                                                                                                                                                          • The Consumer – Where Do Irish Consumers Do Their Top-up Shopping?

                                                                                                                                                              • NI consumers prefer to top-up at Lidl and Tesco
                                                                                                                                                                • Figure 31: Stores that consumers do their top-up shopping with (in-store), NI, September 2015
                                                                                                                                                              • ABC1s topping up at Lidl and Tesco
                                                                                                                                                                • Figure 32: Stores that consumers do their top-up shopping with (in-store), by gender, age and social class, NI, September 2015
                                                                                                                                                              • Lidl also the most popular top-up shop in RoI
                                                                                                                                                                • Figure 33: Stores that consumers do their top-up shopping with (in-store), RoI, September 2015
                                                                                                                                                              • Young children an influence on top-up shopping
                                                                                                                                                                • Figure 34: Stores that consumers do their top-up shopping with (in-store), by presence of children in the household, RoI, September 2015
                                                                                                                                                            • The Consumer – Types of Grocery Products Bought at Discount Supermarkets

                                                                                                                                                                • Fresh fruit and vegetables popular at Aldi and Lidl
                                                                                                                                                                  • Figure 35: Types of food and drink grocery products bought at Aldi and Lidl in the last three months, NI and RoI, September 2015
                                                                                                                                                                • Children influencing the purchasing of fresh fruit and vegetables
                                                                                                                                                                  • Figure 36: Consumers who have bought fresh fruit and vegetables from Aldi and Lidl in the last three months, by gender and presence of children in the household, NI and RoI, September 2015
                                                                                                                                                                • Working consumers key purchasers of Aldi and Lidl’s bread
                                                                                                                                                                  • Figure 37: Consumers who have bought bread (packaged or baked in-store) from Aldi and Lidl in the last three months, by work status, NI and RoI, September 2015
                                                                                                                                                              • The Consumer – Types of Non-Food Grocery Products Bought at Discount Supermarkets

                                                                                                                                                                  • Personal care the top non-food category at the discounters
                                                                                                                                                                    • Figure 38: Types of non-food grocery products bought at Aldi and Lidl in the last three months, NI and RoI, September 2015
                                                                                                                                                                  • Women the main buyers of personal care products at Aldi and Lidl
                                                                                                                                                                    • Figure 39: Consumers who have bought personal care items at Aldi and Lidl in the last three months, by gender and age, NI and RoI, September 2015
                                                                                                                                                                  • Children influencing the purchase of cleaning products
                                                                                                                                                                      • Figure 40: Consumers who have bought household cleaning (eg washing detergent, surface cleaner, toilet cleaner) products at Aldi and Lidl in the last three months, by presence of children in the household, NI and RoI, September 2015
                                                                                                                                                                  • The Consumer – Attitudes towards Discount Retailers

                                                                                                                                                                      • Irish consumers see improvements in quality of discounter groceries
                                                                                                                                                                          • Figure 41: Agreement with statements relating to purchasing groceries from discount retailers, NI and RoI, September 2015
                                                                                                                                                                        • Women and late Millennials not able to buy all groceries they need from discounters
                                                                                                                                                                          • Figure 42: Agreement with statements relating to purchasing groceries from discount retailers, by gender and age, NI, September 2015
                                                                                                                                                                          • Figure 43: Agreement with statements relating to purchasing groceries from discount retailers, by gender and age, RoI, September 2015
                                                                                                                                                                        • Early Gen-Xers to buy non-grocery items from discounters
                                                                                                                                                                          • Figure 44: Agreement with statements relating to purchasing groceries from discount retailers, by age, NI, September 2015
                                                                                                                                                                          • Figure 45: Agreement with statements relating to purchasing groceries from discount retailers, by age, RoI, September 2015
                                                                                                                                                                        • Older consumers most likely to notice improvements in product quality
                                                                                                                                                                            • Figure 46: Agreement with statements relating to purchasing groceries from discount retailers, by gender and age, RoI, September 2015
                                                                                                                                                                            • Figure 47: Agreement with statements relating to purchasing groceries from discount retailers, by gender and age, NI, September 2015
                                                                                                                                                                        • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                          • Data sources
                                                                                                                                                                            • Market size rationale
                                                                                                                                                                              • Abbreviations
                                                                                                                                                                              • Appendix – The Consumer

                                                                                                                                                                                • NI Toluna
                                                                                                                                                                                  • Figure 48: Who is responsible for grocery retailing in a household, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 49: How consumers do their main grocery shop, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 50: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 51: Stores that consumers do their main grocery shopping with (in-store), by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 52: Stores that consumers do their top-up shopping with (in-store), by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 53: Stores that consumers do their top-up shopping with (in-store), by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 54: Stores that consumers do their top-up shopping with (in-store), by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 55: Average amount that consumers spend each week for household groceries, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 56: Types of food and drink grocery products bought at Lidl in the last three months, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 57: Types of food and drink grocery products bought at Lidl in the last three months, by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 58: Types of food and drink grocery products bought at Lidl in the last three months, by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 59: Types of non-food grocery products bought at Lidl in the last three months, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 60: Types of non-food grocery products bought at Lidl in the last three months, by demographics, NI, September 2015 (continued)
                                                                                                                                                                                  • Figure 61: Agreement with the statement ‘The choice of well-known brands available at discount supermarkets has improved in the last 12 months’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 62: Agreement with the statement ‘The quality of fresh bakery products at discount supermarkets has improved in the last 12 months’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 63: Agreement with the statement ‘The quality of fresh fruit and vegetables at discount supermarkets has improved in the last 12 months’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 64: Agreement with the statement ‘I have visited discount supermarkets specifically to buy non-grocery items I have seen advertised (eg electrical items, clothing, homewares)’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 65: Agreement with the statement ‘I cannot buy all the groceries I need at discount supermarkets’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 66: Agreement with the statement ‘I sometimes buy non-grocery items (eg electrical, clothing, homewares) I did not plan to buy when shopping at discount supermarkets’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 67: Agreement with the statement ‘I do more of my grocery shopping at discount supermarkets than I did 12 months ago’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 68: Agreement with the statement ‘I would like to see a bigger choice of non-grocery items (eg electrical) at discount supermarkets’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 69: Agreement with the statement ‘I shop at discounters because money is tight’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 70: Agreement with the statement ‘The choice of items available within certain ranges (eg chilled ready meals) at discount supermarkets is too limited’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 71: Agreement with the statement ‘I would be willing to use discounter-branded services (eg banking, telephone, broadband)’, by demographics, NI, September 2015
                                                                                                                                                                                  • Figure 72: Agreement with the statement ‘I would spend more of my weekly grocery budget at discounters if they offered more of my favourite brands (eg Coca-Cola, Kellogg’s, etc)’, by demographics, NI, September 2015
                                                                                                                                                                                • RoI Toluna
                                                                                                                                                                                  • Figure 73: Who is responsible for grocery retailing in a household, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 74: How consumers do their main grocery shop, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 75: Stores that consumers do their main grocery shopping with (in-store), by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 76: Stores that consumers do their main grocery shopping with (in-store), by demographics, RoI, September 2015 (continued)
                                                                                                                                                                                  • Figure 77: Stores that consumers do their top-up shopping with (in-store), by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 78: Stores that consumers do their top-up shopping with (in-store), by demographics, RoI, September 2015 (Continued)
                                                                                                                                                                                  • Figure 79: Stores that consumers do their top-up shopping with (in-store), by demographics, RoI, September 2015 (continued)
                                                                                                                                                                                  • Figure 80: Average amount that consumers spend each week for household groceries, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 81: Types of food and drink grocery products bought at Aldi and Lidl in the last three months, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 82: Types of food and drink grocery products bought at Aldi and Lidl in the last three months, by demographics, RoI, September 2015 (continued)
                                                                                                                                                                                  • Figure 83: Types of food and drink grocery products bought at Aldi and Lidl in the last three months, by demographics, RoI, September 2015 (continued)
                                                                                                                                                                                  • Figure 84: Types of non-food grocery products bought at Aldi and Lidl in the last three months, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 85: Types of non-food grocery products bought at Aldi and Lidl in the last three months, by demographics, RoI, September 2015 (continued)
                                                                                                                                                                                  • Figure 86: Agreement with the statement ‘The choice of well-known brands available at discount supermarkets has improved in the last 12 months’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 87: Agreement with the statement ‘The quality of fresh bakery products at discount supermarkets has improved in the last 12 months’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 88: Agreement with the statement ‘The quality of fresh fruit and vegetables at discount supermarkets has improved in the last 12 months’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 89: Agreement with the statement ‘I have visited discount supermarkets specifically to buy non-grocery items I have seen advertised (eg electrical items, clothing, homewares)’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 90: Agreement with the statement ‘I cannot buy all the groceries I need at discount supermarkets’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 91: Agreement with the statement ‘I sometimes buy non-grocery items (eg electrical, clothing, homewares) I did not plan to buy when shopping at discount supermarkets’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 92: Agreement with the statement ‘I do more of my grocery shopping at discount supermarkets than I did 12 months ago’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 93: Agreement with the statement ‘I would like to see a bigger choice of non-grocery items (eg electrical) at discount supermarkets’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 94: Agreement with the statement ‘I shop at discounters because money is tight’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 95: Agreement with the statement ‘The choice of items available within certain ranges (eg chilled ready meals) at discount supermarkets is too limited’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 96: Agreement with the statement ‘I would be willing to use discounter-branded services (eg banking, telephone, broadband)’, by demographics, RoI, September 2015
                                                                                                                                                                                  • Figure 97: Agreement with the statement ‘I would spend more of my weekly grocery budget at discounters if they offered more of my favourite brands (eg Coca-Cola, Kellogg’s, etc)’, by demographics, RoI, September 2015

                                                                                                                                                                              Companies Covered

                                                                                                                                                                              To learn more about the companies covered in this report please contact us.

                                                                                                                                                                              Grocery Retailing – Multiples vs Discounters - Ireland - December 2015

                                                                                                                                                                              £1,095.00 (Excl.Tax)