Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Growth of Hard Discounters - Ireland - June 2009

Hard discounters account for a relatively small portion of the all-Ireland grocery market (Aldi represents 5% of the market, while Lidl holds 8%), however, they have the opportunity to maximise their market share by capitalising on the growing trading-down trend evident in today’s cash-strapped market.

With the era of prosperity and premiumisation drawing to a close and consumers from all walks of life seeking to make cutbacks, much of the stigma previously attached to the concept of value and budget has been dissolved. Consequently, hard discounters have become a viable retail alternative for a much greater slice of the population.

However, as discounters continue to grow in popularity, aggressive price-cutting tactics from other grocers, and indeed a return to greater financial stability, could mean that their success is short-lived.

Key themes of the report

  • What factors are driving consumers’ purchasing decisions?

  • Are the media playing a role in increasing the popularity of discounters?

  • What measures are discounters taking to grow their market presence?

  • How are retailers such as Tesco and SuperValu responding to the threat of the discounters?

  • Are discounters such as Aldi and Lidl here for the long haul, or are they just a short-term phenomenon?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key themes of the report
        • Definition
          • Abbreviations
          • Insights and Opportunities

            • Enhancing dialogue with consumers
              • Diverse opportunities
                • Clear positioning
                • Market in Brief

                  • Discounters tighten their grip on Ireland’s food retailing sector
                    • Times of hardship ultimately mean changing shopping patterns
                      • The era of the bargain hunter
                        • Easing the threat of hard discounters
                        • Fast Forward Trends

                            • Trend 2: Bottomless Vanity
                              • What's it about?
                                • What we've seen
                                  • What next?
                                    • Trend 2: Trust In Me
                                      • What's it about?
                                        • What we've seen
                                          • What next?
                                          • Internal Market Environment

                                            • Key points
                                              • Rise to fame
                                                • Figure 1: The rise to fame of the hard discounters, 2009
                                              • The birth of the bargain hunter
                                                • High degree of price-consciousness in RoI
                                                  • Figure 2: Consumer agreement to range of shopping statements, RoI and NI, 2003-08
                                                • The strategic approach
                                                  • Figure 3: Consumer response to statement ‘I decide what I want before doing the weekly shop’, by gender, age and social grade, RoI and NI, 2008
                                                • Coming up trumps
                                                  • The knock-on effect from price-comparison statistics
                                                    • Importance of fresh local produce
                                                      • Figure 4: Consumer response with statements relating to shopping, RoI and NI, 2003-08
                                                    • Meeting consumers’ health and nutrition expectations
                                                      • Figure 5: NPD food & drink launches, UK and Ireland, 2003-09
                                                    • Benefits of leading a healthier lifestyle
                                                      • Fresh food revolution
                                                          • Figure 6: Consumer response with statements relating to their lifestyle, RoI and NI, 2003-08
                                                        • Own-label substitutes gain ground
                                                          • Figure 7: Consumer agreement to a range of food statements, RoI and NI, 2003-08
                                                      • Broader Market Environment

                                                        • Key points
                                                          • Ireland’s recession plays to the advantage of discounters
                                                            • Figure 8: Economic outlook for NI and RoI, 2008-10
                                                          • How confident are we?
                                                            • Possible market opportunity by helping consumers cut back
                                                              • Figure 9: Consumer responses to statement ‘When feeling the pinch, which of these are you most likely to do when trying to cut back your personal spending?’, NI and RoI*, January 2008
                                                            • Rise of the ‘euro tourist’
                                                              • Easing the threat of ‘euro tourists’
                                                                • Adapting to an ageing market
                                                                  • Figure 10: RoI and NI projected population, by age group, 2000-20
                                                                • Technology developments may be vital for growth of hard discounters
                                                                  • Figure 11: Number of respondents with a broadband internet connection at home, NI and RoI, 2004-08
                                                              • Strengths and Weaknesses

                                                                • Strengths
                                                                  • Weaknesses
                                                                  • Innovation in Value Brands

                                                                    • Key points
                                                                      • Sizeable rise in the number of value ranges launched in 2008
                                                                        • Figure 12: Number of economy and premium food and drink launches in the meals and meal centres and bakery categories, UK/RoI, 2003-09
                                                                      • The recession boosts demand for condiments, bakery and convenience items
                                                                        • Findings documented in the Bottled water hit by the crunch article
                                                                          • Tesco leads the way in value NPD launches
                                                                            • Figure 13: Number of economy food and drink launches, by company, UK and RoI, 2003-09
                                                                        • Growth of the Hard Discounters

                                                                          • Key points
                                                                            • Ireland’s changing food retailing environment
                                                                              • Hard discounters tighten their grip on RoI grocery market
                                                                                • Figure 14: Market share of RoI grocery market, by retailer, 2006 and 2008
                                                                              • Aldi and Lidl increase their market presence
                                                                                • Tesco dominates the UK food retailing sector
                                                                                  • Figure 15: Market share of the UK grocery market, by retailer, 2006-08
                                                                                • Comparison to NI grocery market
                                                                                  • Profile of Ireland’s hard discounters
                                                                                    • Aldi
                                                                                        • Figure 16: Aldi business model, 2009
                                                                                        • Figure 17: Aldi product range, 2009
                                                                                      • Lidl
                                                                                          • Figure 18: Lidl business model, 2009
                                                                                      • Competitor Reaction

                                                                                        • Key points
                                                                                          • More competitive retail arena
                                                                                              • Figure 19: Advertising expenditure, by retailer, RoI, 2004 and 2008
                                                                                            • Asda
                                                                                              • Impact of the credit crunch
                                                                                                • How is Asda targeting the discount shopper?
                                                                                                  • Pricing and promotion
                                                                                                    • Asda lower price promise goes live
                                                                                                      • Back with the old – the return of the pocket tap
                                                                                                        • Expansion of distribution
                                                                                                          • Communications – message to consumers
                                                                                                            • Budget ranges
                                                                                                              • Figure 20: Asda own-label range, 2009
                                                                                                            • Dunnes Stores
                                                                                                              • Impact of the credit crunch
                                                                                                                • How is Dunnes targeting the discount shopper?
                                                                                                                  • Communications – message to consumers
                                                                                                                    • Budget ranges
                                                                                                                      • Marks & Spencer (RoI and NI)
                                                                                                                        • Impact of the credit crunch
                                                                                                                          • How is M&S targeting the discount shopper?
                                                                                                                            • Jumping on the promotions bandwagon
                                                                                                                              • Latest seasonal features
                                                                                                                                • Move to incorporate branded items
                                                                                                                                  • Communications – message to consumers
                                                                                                                                    • Creating a night-out ambience at home
                                                                                                                                      • Budget ranges
                                                                                                                                        • Food baskets
                                                                                                                                          • Sainsbury’s (NI only)
                                                                                                                                            • Impact of the credit crunch
                                                                                                                                              • How is Sainsbury’s targeting the discount shopper?
                                                                                                                                                • Basic food and drink lines boost sales at Sainsbury’s checkouts
                                                                                                                                                  • Targeting the stay-at-home consumer
                                                                                                                                                    • Communications – message to consumers
                                                                                                                                                      • Encouraging consumers to become smarter shoppers
                                                                                                                                                        • Budget ranges
                                                                                                                                                          • Figure 21: Sainsbury’s economy range, 2009
                                                                                                                                                        • SuperValu
                                                                                                                                                          • Impact of credit crunch
                                                                                                                                                            • How is SuperValu targeting the discount shopper?
                                                                                                                                                              • The price promise
                                                                                                                                                                • Meal for the family
                                                                                                                                                                  • Aligning closely with suppliers
                                                                                                                                                                    • Communications – message to consumers
                                                                                                                                                                      • Striving to stand out
                                                                                                                                                                        • SuperValu real rewards
                                                                                                                                                                          • Budget ranges
                                                                                                                                                                            • Tesco Ireland
                                                                                                                                                                              • Impact of the credit crunch
                                                                                                                                                                                • The one to beat
                                                                                                                                                                                  • Job generation despite the recession
                                                                                                                                                                                    • How is Tesco Ireland targeting the discount shopper?
                                                                                                                                                                                      • Every little helps
                                                                                                                                                                                        • Targeting consumers at their richest?
                                                                                                                                                                                          • Clubcard and online shopping service helps maintain customer footfall
                                                                                                                                                                                            • Communications – message to consumers
                                                                                                                                                                                              • Real baskets
                                                                                                                                                                                                • Budget ranges
                                                                                                                                                                                                  • Figure 22: Tesco value ranges, 2009
                                                                                                                                                                                              • Shopping Priorities

                                                                                                                                                                                                • Key points
                                                                                                                                                                                                  • Competing with other grocers’ offerings
                                                                                                                                                                                                    • Figure 23: Deciding factors when shopping for food, drink and household products, by most important factor, RoI and NI, 2003 and 2008
                                                                                                                                                                                                  • Making the shopping trip more convenient
                                                                                                                                                                                                    • Bringing in the shoppers
                                                                                                                                                                                                      • Figure 24: Type of shop consumers prefer to shop when doing the regular main shopping for food, drink and household products, RoI and NI, 2003-08
                                                                                                                                                                                                    • Top-up shopping opportunities
                                                                                                                                                                                                      • Figure 25: Type of shop consumers prefer to shop in when topping up their food, drink and household products, RoI and NI, 2003-08
                                                                                                                                                                                                  • Where do Consumers Shop?

                                                                                                                                                                                                    • Key points
                                                                                                                                                                                                      • An increasingly fickle shopper?
                                                                                                                                                                                                          • Figure 26: Food and drink retailers regularly shopped in, RoI and NI, January 2009
                                                                                                                                                                                                        • One in three Irish consumers regularly shop in convenience stores
                                                                                                                                                                                                          • Targeting the Irish consumer
                                                                                                                                                                                                            • Recessional guilt
                                                                                                                                                                                                              • Does loyalty come at a price?
                                                                                                                                                                                                                • The consequences for the market
                                                                                                                                                                                                                • Important Factors When Shopping

                                                                                                                                                                                                                  • Key points
                                                                                                                                                                                                                    • Hard discounters to capitalise on changing retail environment
                                                                                                                                                                                                                      • The rise of the bargain hunter
                                                                                                                                                                                                                        • Figure 27: Most important factors when grocery shopping, RoI and NI, January 2009
                                                                                                                                                                                                                      • Premium aspects are important to a third of Irish consumers
                                                                                                                                                                                                                        • Varied shopping basket in RoI
                                                                                                                                                                                                                          • It’s not all about price – today’s discounter is multidimensional
                                                                                                                                                                                                                            • Figure 28: Important factors when grocery shopping, according to Aldi/Lidl shoppers, RoI, January 2009
                                                                                                                                                                                                                            • Figure 29: Important factors when grocery shopping, according to Aldi/Lidl shoppers, NI, January 2009
                                                                                                                                                                                                                        • Consumer Typologies

                                                                                                                                                                                                                          • Key points
                                                                                                                                                                                                                            • RoI consumer typologies
                                                                                                                                                                                                                              • Figure 30: Consumer typologies relating to most concerning economic factors, choice of retailers and most important aspects when shopping, RoI, January 2009
                                                                                                                                                                                                                            • Discount Dynamos
                                                                                                                                                                                                                              • Money Stretchers
                                                                                                                                                                                                                                • Green Shoppers
                                                                                                                                                                                                                                  • NI consumer typologies
                                                                                                                                                                                                                                    • Figure 31: Consumer typologies relating to most concerning economic factors, choice of retailers and most important aspects when shopping, NI, January 2009
                                                                                                                                                                                                                                  • Bargain Hunters
                                                                                                                                                                                                                                    • Local Supporters
                                                                                                                                                                                                                                      • Conscientious Shoppers
                                                                                                                                                                                                                                      • Appendix

                                                                                                                                                                                                                                          • GNPD appendix
                                                                                                                                                                                                                                            • Figure 32: Number of economy food and drink launches, by category, UK and RoI, 2003-09
                                                                                                                                                                                                                                          • TGI appendix
                                                                                                                                                                                                                                            • Figure 33: Agreement with the statement ‘I buy goods produced by my own country whenever I can’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 34: Agreement with the statement– ‘I tend to spend money without thinking’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 35: Agreement with the statement– ‘I like to try out new food products’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 36: Agreement with the statement– ‘I buy free-range products whenever I can’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 37: Agreement with the statement– ‘I am eating more healthy food than I have in the past’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 38: Agreement with the statement– ‘I always use money-off coupons and vouchers’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 39: Agreement with the statement– ‘It's worth paying more for organic food’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 40: Agreement with the statement– ‘I always look out for special offers’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 41: Agreement with statement– ‘I buy fair trade products when available’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 42: Agreement with the statement– ‘I pay attention to where the products I purchase are made/grown’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 43: Agreement with the statement– ‘I am prepared to pay more for foods that don't contain artificial additives’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 44: Agreement with the statement– ‘I always think of the calories in what I eat’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 45: Agreement with the statement– ‘I try to include plenty of fibre in my diet these days’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 46: Agreement with the statement– ‘I should do more about my health’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 47: Agreement with the statement– ‘I consider my diet to be very healthy’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 48: Agreement with the statement– ‘I always check the nutritional content of food’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                            • Figure 49: Agreement with the statement– ‘I always look for the light/diet versions of food & drink’, by demographic breakdown, NI and RoI, 2008
                                                                                                                                                                                                                                          • Millward Brown appendix
                                                                                                                                                                                                                                            • Figure 50: Food and drink retailers regularly shopped in, by demographics, NI, January 2009
                                                                                                                                                                                                                                            • Figure 51: Food and drink retailers regularly shopped in, by demographics, RoI, January 2009
                                                                                                                                                                                                                                            • Figure 52: Most important factors when shopping for food and drink, by demographics, NI, January 2009
                                                                                                                                                                                                                                            • Figure 53: Most important factors when shopping for food and drink, by demographics, RoI, January 2009
                                                                                                                                                                                                                                            • Figure 54: Most important factors when shopping for food and drink, by demographics, RoI, January 2009
                                                                                                                                                                                                                                            • Figure 55: Consumers’ choice of retailers, by ethical preferences, RoI, January 2009
                                                                                                                                                                                                                                            • Figure 56: Consumers’ choice of retailers, by ethical preferences, NI, January 2009
                                                                                                                                                                                                                                          • Consumer typologies appendix
                                                                                                                                                                                                                                            • Figure 57: Consumer response with statements on most concerning factors regarding current economic situation, retailer regularly shopped in and most important factors when shopping, by cluster groups, NI, January 2009
                                                                                                                                                                                                                                            • Figure 58: Demographic profile of NI cluster groups, January 2009
                                                                                                                                                                                                                                            • Figure 59: Consumer response with statements on most concerning factors regarding current economic situation, retailer regularly shopped in and most important factors when shopping, by cluster groups, RoI, January 2009
                                                                                                                                                                                                                                            • Figure 60: Demographic profile of RoI cluster groups, January 2009

                                                                                                                                                                                                                                        Companies Covered

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

                                                                                                                                                                                                                                        Growth of Hard Discounters - Ireland - June 2009

                                                                                                                                                                                                                                        £1,095.00 (Excl.Tax)