‘Staycations’ see branded sales soar in Lidl and Aldi
Not only did people support local by taking ‘staycations’ and holidaying in Ireland this summer, but figures from the last month show that people were also inclined to support local when doing the weekly shop.
According to Kantar, both Aldi and Lidl saw branded sales soar due to the retailers’ “reputation for value” as “shoppers tighten their belts”.
Branded groceries proved popular despite “widespread economic uncertainty as people chose to treat themselves to little luxuries at home”.
SuperValu continues to hold highest market share
SuperValu continues to hold the highest market share at 22.3%, along with remaining as the only retailer to attract new shoppers this period.
Tesco holds the second largest market share at 21.1%, along with “bigger baskets, with volumes up 25%”.
In the case of Dunnes, it was relatively similar – the retailer recorded the highest average spend per trip, while also experiencing an increase in volumes and higher average prices to hold a 20.5% market share.
Aldi recorded a growth of 18.4% last month. It was also a busy few weeks for Lidl, as it launched its rewards scheme ‘Lidl Plus’ and achieved the strongest growth rate of all the major retailers this period – with it now holding its highest ever market share of 12.8%.
Take-home groceries slowed, online grew
Take-home Irish grocery sales growth slowed to 18% over the past three months and grocery spend over the latest four weeks was the lowest since February. This is still significantly higher than pre-pandemic levels.
However, online sales grew by 125%.
“People spent approximately €5 less per trip over the last four weeks compared with April; picking up fewer items in store as they start to return to pre-Covid-19 habits,” Healy said.
The other stand-out spending habit was the increase in interest in branded goods – despite “economic uncertainty and predictions of recession”.
Brands have managed to capture an impressive proportion of consumer spend over the latest period, amounting to an additional €245 million and outpacing private labels to grow by 23.4%.
“It suggests that people are choosing to treat themselves in store with little luxuries while we’re all spending more time at home.”
A summer of staycations
Despite a fairly rainy summer, a strong case was made for ‘staycations’ and holidaying in Ireland.
Alcohol sales are up 56% over the last 12 months, but according to Healy, this represents a “significant slowdown from the 76% growth rate we saw last month” as people get used to the new rules and are beginning to socialise more out of home.
Sales for logs and firelighters also grew by 77% in the last month, as people “enjoyed barbecues and camp fires”.
Healy added: “Hotel breakfasts were swapped for homemade alternatives and eggs, bacon and sausages all grew ahead of the market in the same period.”