However, commercial director for Kantar Worldpanel David Berry explained that, although the grocery market had grown since a boost in April, it was still a long way behind the inflation rate, which stands at 4.1%.
Berry said: “While the growth seen this month is a good sign for the grocery market, we are not out of the woods just yet and many grocery retailers are still struggling. Shoppers are continuing to watch their purse strings, buying fewer groceries per trip, but shopping more often. They are also spreading their spend across a broader spectrum of stores, meaning it is a challenge for the grocers to drive sales growth.”
For Berry the “standout” performer is the budget supermarket chain Aldi, which posted growth of more than 30%. The success of Aldi lay in its ability to bring in new shoppers, he said, with an extra 70,000 people coming into stores this year.
Positive results for Lidl and Tesco in Ireland have also been posted and Berry pointed out that both had seen shares grow by 0.2 and 0.6 percentage points each. He said: “Both retailers have also benefited from the ‘shop more, spend less’ trend which has helped attract new customers to their stores.”
Irish supermarket chain Dunnes has also seen growth and managed to reverse a previous decline in fortunes by boosting its market share to 22.4%, which Berry said was up from 21.6% from last month.
According to Berry, the increase in Dunnes’ share value has coincided with its October initiative, which gave shoppers €5 back for every €50 they spent in-store. Berry said: “With initial results suggesting shoppers have responded well to this deal, it will be interesting to see how each of the competing retailers will respond in the lead-up to the Christmas period.”