Tesco Surges On Strength of Private Brand in Ireland

TESCO has surged ahead of other retailers in Ireland, increasing its market share as more shoppers look for value and cut down on trips to the North.

Aldi and Lidl also increased market share over the last year, according to figures from consultancy firm, Kantar Worldpanel.  There has also been a growth in sales of cheaper private label products, which now make up a third of Ireland’s grocery spend.

In the 12 weeks ending November 28 the Irish grocery market recorded growth of 1.6%. This, however, was driven by price increases, which will hurt the pockets of consumers in the run-up to Christmas.

Grocery inflation rose from 3.3% in November to 4.2% in December and has hit the highest level since 2009, according to the research.

Tesco, however. is the clear winner among the multiples, maintaining strong growth of 5.8% to 27%.

Commercial director at Kantar Worldpanel David Berry said: “On top of price increases, the December budget cuts have added to consumer woes this month. In response to this, shoppers have reduced the size of their weekly shopping basket and continued to trade down to cheaper products, causing market growth to fall behind inflation. We’re seeing this in growing sales of cheaper private label products which now capture a third of our grocery spend. There is no sign yet of the traditional swing back to branded products in the run-up to Christmas.”

Source: The Irish Examiner

Previous articlePrivate Brand “Favorite Stuff of the Year”
Next articlePLMA Leadership Conference to Focus on the Consumer
Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.