Supermarket Retailing - Ireland

The need for convenience might help to encourage more consumers to do their shopping online, helping supermarkets to compete better with convenience stores and discounters for market share of all-grocery sales.

Table of contents

INSIGHTS AND OPPORTUNITIES
Easing fears about online grocery shopping
Entertaining at home helps to boost sales
Kids staying at home for longer

MARKET IN BRIEF
Irish consumers more likely to plan their shopping
Groceries market grows
Tesco most regularly shopped at supermarket
FAST FORWARDS
Trend 1: The Big Issue
What’s it about?
What we’ve seen
What next?
Trend 2: Men Shopping Badly
What’s it about?
What we’ve seen
What next?

INTERNAL MARKET ENVIRONMENT
Key points
A higher degree of planning

Figure 1: Agreement with the statement ‘I decide what I want before I do the weekly shopping’, RoI and NI, 2006-11
Figure 2: Agreement with the statement ‘When doing the household shopping I budget for every penny’, RoI and NI, 2006-11

Recession frugality is unlikely to disappear

Figure 3: Agreement with the statement ‘When the recession ends, I will buy more branded products’, RoI and NI, 2010

Women still main grocery shoppers in NI and RoI

Figure 4: Gender and marital status of main shoppers, RoI and NI, 2011

RoI men more likely to grocery shop than NI men

Figure 5: Agreement with the statement ‘I really enjoy cooking’, by gender, RoI and NI, 2009 and 2011

High street and town centre supermarkets attract more shoppers

Figure 6: Type of shop consumers are most likely to go to for their grocery shopping, RoI and NI, 2009-11

Distance travelled an important consideration

Figure 7: Distance consumers travel for grocery shopping, RoI and NI, 2011

Fuel price concerns make location all the more important

Figure 8: Type of transport used for grocery shopping, RoI and NI, 2011
Figure 9: UK and RoI fuel prices (petrol and diesel), 2001-11

Rental rates may push supermarkets out of town

Figure 10: € per annum rental per metre squared, for Belfast and Dublin, 2011

Supermarket expansion faces resistance
The importance of local sourcing
Online channel beginning to gain momentum

Figure 11: Internet used in the last 12 months, RoI and NI, 2005-11
Figure 12: Daily internet usage, NI and RoI, August 2011

Free delivery is key to growing the online groceries channel

Figure 13: Factors that encourage consumers to try/do more online food shopping, NI and RoI, June 2011

Obesity rears its ugly head
Comfort eating contributing to weight problem

Figure 14: Agreement with the statement ‘I should do more about my health’, RoI and NI, 2006-11

BROADER MARKET ENVIRONMENT
Key points
Consumer expenditure drops in RoI, and stalls in NI

Figure 15: Economic outlook, RoI and NI, 2009-11

Economy still troubled
...but groceries are seen as a necessary spend

Figure 16: Areas consumers have cut back on spending in the last 12 months, NI and RoI, July 2010

Consumer sentiment wanes

Figure 17: Consumer Sentiment/Confidence Index, UK and RoI, September 2008-11
Figure 18: Issues concerning consumers, RoI and NI, 2011

Increase in global food prices will limit consumer spending power

Figure 19: Global price of wheat per tonne (€), September 2008-11
Figure 20: Global price of barley per metric ton (€), September 2010-September 2011

Prices increase, but wages don’t

Figure 21: Median gross weekly pay, NI and RoI, 2006-11

Unemployment set to worsen

Figure 22: Unemployment rates, RoI and NI, July 2009-June 2011

Ageing of population puts emphasis on quality

Figure 23: Agreement with the statement ‘I only shop at supermarkets that sell good-quality fresh food’, by age, RoI and NI, 2011

STRENGTHS AND WEAKNESSES
Strengths
Weaknesses

WHO’S INNOVATING?
Key points
Bakery category sees highest NPD

Figure 24: New food and drink product launches to UK and Irish market, by top ten categories, 2007-11

Brand new products most popular type of launch

Figure 25: New food and drink product launches to UK and Irish market, by top five launch types, 2007-11

Health claims dominate new product launches

Figure 26: New food and drink product launches to UK and Irish market, by top ten product claims, 2007-11

Light and diet product development
Tesco the most prolific company in terms of product launches

Figure 27: New food and drink product launches to UK and Irish market, by top ten companies, 2007-11

MARKET VALUE AND FORECAST
Key points
All-Ireland food retailing sales contract to €14.6 billion in 2011

Figure 28: All grocery sales, all-Ireland, 2005-15

NI grocery sales value increases, but due to inflation and higher production costs
NI food retailing market accounting for bigger percentage of total

Figure 29: All grocery sales, by percentage share, NI and RoI, 2008 and 2011

Supermarket retailers account for highest percentage share of the food retailing market

Figure 30: All grocery sales, by segment, all-Ireland, 2011

Supermarket retailers more dominant in NI

Figure 31: Estimated supermarket retailers’ segment market value, all-Ireland, RoI and NI, 2005-15

Austerity measures and drive for value will slow future growth for RoI

COMPETITIVE CONTEXT
Key points
Recession has put a dampener on convenience store market

Figure 32: Estimated convenience store segment market value, all-Ireland, RoI and NI, 2005-11

Loss of lunchtime trade takes a bite out of the market

Figure 33: Agreement with statements relating to lunch meals, NI and RoI, August 2011

Convenience aspect still a draw for shoppers
Discounters segment experiences rapid uplift in NI

Figure 34: Estimated discounters’ segment market value, all-Ireland, RoI and NI, 2005-11

Irish consumers display positive attitude towards discounters

Figure 35: Agreement with statements relating to grocery shopping, NI and RoI, May 2010

COMPANIES AND PRODUCTS

Figure 36: Retailers profiled, 2010

Asda
Co-op
Dunnes Stores
Iceland
Marks & Spencer
Sainsbury’s
Superquinn
SuperValu
Tesco

THE CONSUMER - WHERE DO IRISH CONSUMERS SHOP?
Key points
Tesco is the store of choice for both NI and RoI consumers

Figure 37: Retailers consumers have shopped most often at in the last month vs. other retailers shopped

at in the last month, NI and RoI, August 2011
Dunnes more popular among RoI consumers

Figure 38: Consumers who have shopped in Dunnes stores in the last month, NI and RoI, August 2011

Cash-strapped RoI consumers more inclined to visit discounters

Figure 39: Consumers who have shopped in Lidl and Aldi in the last month, NI and RoI, August 2011

Discounters expanding to meet growing consumer need
Half of RoI consumers shopped in SuperValu in the last month

Figure 40: Consumers who have shopped in SuperValu in the last month, NI and RoI, August 2011

M&S premium standing keeps visitations down

Figure 41: Consumers who have shopped in M&S in the last month, NI and RoI, August 2011

Trend for treats helping to drive monthly visits to M&S
Superquinn visited by 18% of RoI consumers

Figure 42: Consumers who value friendly and helpful staff, by age, NI and RoI, August 2011

Convenience retailers - NI consumers prefer Spar, RoI consumers prefer Centra

Figure 43: Consumers who visit Spar or Centra at least once a month, NI and RoI, August 2011

THE CONSUMER - ATTITUDES TOWARDS GROCERY SHOPPING
Key points
Mainstream supermarkets are preferred retailers of Irish consumers

Figure 44: Agreement with statements relating to grocery shopping habits, NI and RoI, August 2011

Supermarkets seen as ideal grocery retailer

Figure 45: Agreement with the statement ‘I prefer to shop at the main supermarkets’, by location and social class, NI and RoI, August 2011

Getting all of the shopping out of the way at once
Full-time workers don’t have time for several shopping trips

Figure 46: Agreement with the statement ‘I do one big grocery shop a week’, by working status, NI and RoI, August 2011

Planning shopping trips helps to cut down on time spent in supermarkets
Mature consumers shopping at discounters more

Figure 47: Agreement with the statement ‘I do a lot of my shopping with discounters’, by age, NI and RoI, August 2011

RoI consumers more likely to be brand switchers

Figure 48: Agreement with the statement ‘I go to whichever shop has the best special offers in a given week’, by gender, NI and RoI, August 2011

Spreading the cost

Figure 49: Agreement with the statement ‘I spread my weekly shopping across a number of shops to get the best value’, by gender and age, NI and RoI, August 2011

Smaller markets and convenience stores not seen as having good value…
…but are still key areas for top-up shopping

Figure 50: Agreement with the statement ‘I only shop in smaller supermarkets/ convenience stores to top up my shopping during the week’, NI and RoI, August 2011

THE CONSUMER - IMPORTANT FACTORS WHEN GROCERY SHOPPING
Key points
Value for money is the most important factor when grocery shopping

Figure 51: Most important factors when grocery shopping, NI and RoI, August 2011

Women and mature consumers more likely to consider value for money

Figure 52: Consumers who consider value for money important when grocery shopping, by gender and age, NI and RoI, August 2011

Consumers with families and those nearing retirement find value for money more vital
Low prices appeal most to the less affluent

Figure 53: Consumers who consider value for money important when grocery shopping, by gender and age, NI and RoI, August 2011

Special offers will draw consumers into retailers
Car parking seen as very important
Shoppers don’t like to travel too far
Consumers prefer supermarkets well stocked with well-known brands

Figure 54: Importance of well-known brands, own-brands and Irish brands, NI and RoI, August 2011

Own-brand products seen as less important, but consumer attitudes towards them are improving

Figure 55: Agreement with the statement ‘On the whole I think well-known brands are better than a shop’s own-brand’, RoI and NI, 2007-11

CONSUMER TARGET GROUPS
NI TARGET GROUPS

Figure 56: Consumer typologies, NI, August 2011

Mainstream Shoppers
Pricers
Valuers
Uncaring
ROI TARGET GROUPS

Figure 57: Consumer typologies, RoI, August 2011

Big Shoppers
Spreaders
Offer Seekers
Not Bothered

APPENDIX

Figure 58: Population, by age, RoI, 2006-41
Figure 59: Population, by age, NI, 2008-58

NI consumer tables
Retailers shopped at the most in the last month

Figure 60: Retailers consumers have bought the most groceries from in the last month, by demographics, NI, August 2011
Figure 61: Retailers consumers have bought the most groceries from in the last month (continued), by demographics, NI, August 2011
Figure 62: Retailers consumers have bought the most groceries from in the last month (continued), by demographics, NI, August 2011

Other retailers shopped at in the last month

Figure 63: Other retailers consumers have bought the most groceries from in the last month, by demographics, NI, August 2011
Figure 64: Other retailers consumers have bought the most groceries from in the last month (continued), by demographics, NI, August 2011
Figure 65: Other retailers consumers have bought the most groceries from in the last month (continued), by demographics, NI, August 2011

Agreement with statements related to grocery shopping

Figure 66: Agreement with statements relating to grocery shopping, by demographics, NI, August 2011
Figure 67: Agreement with statements relating to grocery shopping, by demographics, NI, August 2011

Important factors when grocery shopping

Figure 68: Important factors when grocery shopping, by demographics, NI, August 2011
Figure 69: Important factors when grocery shopping (continued), by demographics, NI, August 2011
Figure 70: Important factors when grocery shopping (continued), by demographics, NI, August 2011

Consumer typology tables

Figure 71: Agreement with statements relating to grocery shopping, by consumer typologies, NI, August 2011
Figure 72: Important factors when grocery shopping (continued), by consumer typologies, NI, August 2011
Figure 73: Consumer typologies, by demographics, NI, August 2011

RoI consumer tables
Retailers shopped at the most in the last month

Figure 74: Retailers consumers have bought the most groceries from in the last month, by demographics, RoI, August 2011
Figure 75: Retailers consumers have bought the most groceries from in the last month (continued), by demographics, RoI, August 2011
Figure 76: Retailers consumers have bought the most groceries from in the last month (continued), by demographics, RoI, August 2011
Figure 77: Other retailers consumers have bought the most groceries from in the last month, by demographics, RoI, August 2011
Figure 78: Other retailers consumers have bought the most groceries from in the last month (continued), by demographics, RoI, August 2011
Figure 79: Other retailers consumers have bought the most groceries from in the last month (continued), by demographics, RoI, August 2011

Agreement with statements related to grocery shopping

Figure 80: Agreement with statements relating to grocery shopping, by demographics, RoI, August 2011
Figure 81: Agreement with statements relating to grocery shopping, by demographics, RoI, August 2011

Important factors when grocery shopping

Figure 82: Important factors when grocery shopping, by demographics, RoI, August 2011
Figure 83: Important factors when grocery shopping (continued), by demographics, RoI, August 2011
Figure 84: Important factors when grocery shopping (continued), by demographics, RoI, August 2011

Consumer typology tables

Figure 85: Agreement with statements relating to grocery shopping, by consumer typologies, RoI, August 2011
Figure 86: Important factors when grocery shopping (continued), by consumer typologies, RoI, August 2011
Figure 87: Consumer typologies, by demographics, RoI, August 2011

APPENDIX: RESEARCH METHODOLOGY

Related research categories

By sector: Retail (in Off-trade)

By market: Ireland (in Europe)