Consumer Spending on the RiseSimon Harkin
Consumer spending on the Rise
The latest Supermarket figures released from Kantar Worldpanel in Ireland indicate that Irish shoppers spent 3.8% more on groceries over the past 12 weeks than they did during the same period the previous year.
Christmas accounts for some of that increase in spending, but consumer confidence in general is rising as people parted with an additional €92 million on groceries over the monitored period; the 12 weeks ending on January 1st 2017.
In fact the average household spend was about €35 up on last year, with the midline of about €193.
Supervalu increased its market share to 22.8%, followed by Dunnes Stores; Tesco, Aldi and Lidl.
Retailers from Supervalu noted that customers responded well to premium own-label products; in-store testing and new Irish products.
Increase in sales all around
Despite getting knocked off the top spot this year, don’t weep for Dunnes Stores – their sales over Christmas were up nearly 5% over last year and the average spend per trip has also increased significantly..
Tesco continued to improve its performance, with sales growing by 1.3% over the final quarter – up from the 1.2% growth the grocer saw in the 12 weeks to 4 December 2016.
The recognition for strongest growth amongst Irish Supermarkets goes to Aldi, who posted an increase in sales of 5.3%. The discounter managed to attract 37,000 new shoppers this Christmas, boosting its market share to 10.5%. Lidl also recorded positive results, with festive sales 2.3% higher than in 2015.
If you want to drive growth for 2017, consider an intelligent partnership with a retail distributor. Make your product a success and ride the wave of increased consumer confidence.