Shoppers from the Republic of Ireland have spent €64.5 million on groceries in Northern Ireland in the past 12 months, according to the latest grocery market share figures from Kantar Worldpanel.
This is the highest value of cross-border trade in five years, according to the research firm.
The consumer insight director at Kantar Worldpanel, Douglas Faughnan, said, “Over the past year, just over one in eight households from the Republic of Ireland made at least one trip north of the border to do a grocery shop. That equates to more than 207,000 shoppers.”
Faughnan added that customers spent substantially more while shopping across the border, with an average spend of €38.50. The same bill back home amounted to €23.70, on average.
Biggest Attraction
Alcohol turned out to be the biggest attraction for shoppers looking for a cross-border bargain.
Faughnan explained, “Of the €65 million spent by Republic of Ireland shoppers in Northern Ireland over the past year, a quarter went on alcohol, adding up to just over €16 million.
“No other food or drink category comes close, with dairy products accounting for the next-largest share of cross-border spend, at 5.9%,” he added.
Incentives
In the past two years, cross-border shopping has been driven by the strength of the euro against sterling.
According to Faughnan, the cost of importing products from Britain decreased, along with the price of producing goods with British ingredients.
This allowed retailers to pass on the savings to consumers, resulting in a drop in grocery prices.
“However, for only the second time in 21 months, grocery prices have increased, suggesting the prolonged period of grocery price deflation may be coming to an end,” Faughnan added.
The Halloween Boost
In the four weeks of trading that preceded Halloween, the holiday generated an uplift of almost €30 million for supermarkets.
Consumers stocked up on supplies for parties and trick-or-treating, and confectionery sales were up 4%, compared to the same period last year.
Meanwhile, 17% of Irish households bought a pumpkin this Halloween, spending a collective €1.5 million on the seasonal vegetable.
Faughnan commented, “With Halloween wrapped up and the arrival of the much-anticipated Christmas TV adverts this week, Irish shoppers are already getting excited [about] the festive season.
“In fact, more than 50,000 people had already bought a Christmas pudding by 4 November,” he added.
Strong Performers
Aldi and Lidl recorded a strong start to the run-up to Christmas, increasing sales by 5.5% and 4.3%, respectively, during the 12 weeks ending 4 November 2018.
This is the second consecutive period in which Aldi has been the best-performing retailer – a feat that it last achieved in August 2017.
The grocer captured 11.7% of the overall market, while Lidl also accounted for 11.7% of sales.
Dunnes improved on its 3.4% growth last period, with overall sales up 3.6%, ensuring that the retailer holds on to its position as the battle for the top spot at Christmas intensifies.
Meanwhile, SuperValu and Tesco accounted for 21.4% and 21.3% of total sales, respectively.
Grocery market inflation stands at 0.21% for the 12-week period ending 4 November 2018.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
