Supermarkets and convenience stores posted a 4.9% increase in retail sales volume in the third quarter of the year, according to the latest Retail Monitor from Ibec, the group that represents the Irish retail sector.
On a month to month basis, September 2018 saw supermarket and c-store sales rise 1.7% in volume terms, while volume sales were up 5.2% in September 2018 compared to the same month the previous year.
Commenting on the findings, Retail Ireland said that the growing trend towards premiumisation is helping to boost sales in this segment.
In the supermarkets and convenience store sector, 'trade has been strong in recent months, driven by a number of factors', it said. 'Volume and value changes are coming into line with the long-term trend of volume growth exceeding value growth not just eliminated but reversed in the month of September.
'The long hot summer was a major boost for convenience stores but there was evidence that the extra spend across the summer led to some belt tightening in September itself. Some evidence of premium product and treats over indexing in the sales recovery, a bellwether for the stronger economy.'
Across The Board
Across all retail segments, volume sales were up 4.6% in the quarter, compared to the same quarter the previous year, the study found.
"2018 has been a strange year for the Irish retail sector thus far," said Retail Ireland director Thomas Burke. "Sales values increased across all retail categories in the third quarter of this year, with full year increases also recorded. However, while the continued upward trajectory in sales is welcome, the peaky nature of the sales patterns has made it difficult for retailers in terms of business planning and from a store operations perspective.
“With the Irish economy growing at close to 9%, the challenge now for retailers will be to carry this momentum into the key Christmas trading period and realise a greater share of the growing levels of disposable income.
"With wage growth running at 3% and increases in consumer disposable income of 4.4%, retailers feel they are not getting their fair share of that uplift with greater levels of spend now going towards other sectors of the economy including the hospitality industries."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
