Tesco is now just 0.3 per cent ahead of Dunnes Stores in the Republic's grocery share wars and the retailer that once had a commanding lead of more than 5 per cent is now dangerously close to slipping into third place.
The latest supermarket share figures from Kantar Worldpanel show that SuperValu will be Ireland’s largest grocery retailer when Christmas Day dawns although less than 1 per cent now separates first and third.
Supervalu has 24.7 per cent of the market compared to the 24.1 per cent which Tesco has. Dunnes Stores has 23.8 per cent.
“It hasn’t all been plain sailing for SuperValu - over the past six months the retailer has seen falling shopper numbers, but in the past 12 weeks it has managed to get that issue under control,” said David Berry, director at Kantar Worldpanel .
“This has allowed SuperValu to strengthen its position at the top, posting impressive sales growth of 3.7 per cent and increasing its share of the grocery market to 24.7 per cent. Alongside a strong performance in its traditional heartland – fruit and vegetables – the grocer also posted excellent sales in confectionery, crisps and snacks and soft drinks during the past quarter.
He said that while value sales may have dipped in Tesco there has been growth in the number of items shoppers are picking up on each trip. “The reduction in value sales is linked to the fact that these items are at a lower price point than last year, leading to a dip in the retailer’s value share of the grocery market.”
Dunnes’ sales continue to grow, with an increase of 3.6 per cent this period to cap off a strong year – the retailer has seen non-stop sales growth for the whole of 2015 and has continually managed to encourage shoppers to spend more per trip, with its Shop and Save campaign helping to create a more loyal customer base and increase its market share to 23.8 per cent.
Elsewhere, Lidl continues to post the strongest growth with sales increasing by 10.6 per cent as 37,000 more shoppers visited the retailer compared with the same time last year.
Dublin has proved a particularly strong region for Lidl, with shopper numbers in the nation’s capital increasing by 10 per cent this quarter. Aldi’s performance remains ahead of the overall market, with sales growth of 2.6 per cent and market share holding at 8.4 per cent.
"While the big Christmas shop has yet to take place there are signs that shoppers may have begun their preparations for the festive season earlier this year," Mr Berry said.
“Confectionery, crisps and snacks have all seen double digit growth in shopper spend when compared with last year, helping to increase overall grocery sales by 2.5 per cent. Such strong growth is an early indicator that Ireland’s retailers could be in for a bumper Christmas, and we’re sure to see grocers competing eagerly for the biggest slice of festive sales.”
