Tesco and SuperValu go head-to-head in shop wars
TESCO and SuperValu are cutting prices as they compete for the position of the country’s favourite supermarket.
The latest supermarket share figures show that the two companies have an equal 25 per cent each of the Irish grocery trade.
Tesco had lost ground to SuperValu in recent months but the good news arising from its comeback is that consumers are benefiting with lower prices in everyday staples. A survey from analysts Kantar Worldpanel shows that in the 12 weeks ending April 26, intense competition between the rivals drove meat and vegetable prices down by 2 per cent and bread prices down 3 per cent compared to this time last year.
Kantar Worldpanel director David Berry said price-cutting by Tesco since the start of the year has lured customers back. ‘They would have seen other retailers were gaining market share and presumably that had an impact on them trying to improve their performance,’ he said. ‘It’s a response they had to make. And it does look to be working quite well for them.
‘Their volume performance has improved ahead of their value so the idea they’re giving people cheaper prices and people are responding by buying a bit more does seem to be working. I still think it’s nip and tuck between the two retailers and that will probably stay the case for the next while,’ Mr Berry added.
Although it lies in third place, Dunnes Stores has posted the strongest sales growth of 3.6 per cent.
This is despite recent industrial action taken by staff just prior to Easter.
According to Kantar, one of the key positives for Dunnes has been its strength in Dublin, an area where grocery sales are growing and where Dunnes accounts for over a quarter of shopper spend. Mr Berry said one of the most interesting trends in the latest data is the slowing growth rate of both Aldi and Lidl. It stated: ‘While the 8.8 per cent growth posted by Aldi and 7.8 per cent for Lidl remains impressive, this is the first time since 2010 that both Aldi and Lidl have grown their sales by less than 10 per cent.’
Consumers’ Association of Ireland chief Dermott Jewell said the continued low prices are the result of a more demanding consumer. ‘The focus on footfall is bringing the emphasis on to staple grocery products for consumers,’ he said.
‘People are buying a lot more’