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Discounters - Ireland - April 2016

Discounters - Ireland - April 2016

“Discounters are currently one of the fastest-growing markets in Ireland, with discount retailers forecast to see 7% growth in 2016. However, there are still hurdles to overcome for discounters to effectively compete with their multiple supermarket rivals.”

Emma McGeown, Research Analyst

This report answers the following questions:

How is the discounters market expected to perform?
How do NI and RoI discount shopping habits differ?
What are the challenges facing the discounters market?


OVERVIEW
What you need to know
Issues covered in this Report
EXECUTIVE SUMMARY
The market
Discounters’ sales estimated for 7% growth in 2016
Figure 1: Estimated total retail sales of food and non-food discounters, NI and RoI, 2011-21
Market factors
A drop in the price level bodes well for discounters
Discounters continue expanding across the Irish market
Financial health improves among Irish consumers
Lack of online presence a barrier to discounters
Competitive strategies
The consumer
Food discounters prove most popular among Irish consumers
Figure 2: Stores that consumers have shopped at in the last three months, by frequency, NI, February
2016
Figure 3: Stores that consumers have shopped at in the last three months, by frequency, RoI, February 2016
Figure 4: Types of food products consumers have purchased from discounters in the last three months, NI and RoI, February 2016
Figure 5: Types of non-food products consumers have purchased from discounters in the last three months, NI and RoI, February 2016
Enticements to shop more in discounters differ between the two regions
Figure 6: Factors that would encourage consumers to shop (or shop more often) in discounters, NI and RoI, February 2016
What we think
ISSUES AND INSIGHTS
How is the discounters market expected to perform?
The facts
The implications
How do NI and RoI discount shopping habits differ?
The facts
The implications
What are the challenges facing the discounters market?
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Discounters’ sales estimated for 7% growth in 2016
Prices fall in Ireland boosted by the expansion of discounters
Discounters continue expanding across the Irish market
Financial health improves among Irish consumers
Discounters’ lack presence online acts as a barrier
MARKET SIZE AND FORECAST
Discounters’ sales estimated for 7% growth in 2016
Figure 7: Estimated total retail sales of food and non-food discounters, IoI, NI and RoI, 2011-21
Figure 8: Estimated discounters’ percentage share of the total grocery retail market, NI and RoI, 2016
NI shoppers show a higher preference towards non-food discounters
Figure 9: Consumers who have visited food vs non-food discounters once per week, NI and RoI, February 2016
Discounters’ expansion will witness sales increase by 28% by 2021
Figure 10: Estimated total retail sales of food and non-food discounters, NI and RoI, 2011-21
MARKET DRIVERS
Prices for key discounter goods fall across IoI
Figure 11: Consumer price index for all goods, food and non-alcoholic beverages, clothing and footwear, furnishings and household equipment, RoI, January 2013-January 2016
Figure 12: Consumer price index for all goods, food and non-alcoholic beverages, clothing and footwear, furnishings and household equipment, NI, January 2014-January 2016
Expansion of discounters market
Figure 13: Agreement with the statement ‘I do more of my grocery shopping at discount supermarkets
than I did 12 months ago’, NI and RoI, 2014 and 2015
Financial health comparison with 2014 and 2015
Figure 14: Consumers who have rated their financial health as healthy (I have money left at the end of the month for a few luxuries or to add to my savings) and OK (I get by, but there’s not a lot left by the time the basics are taken care of), NI and RoI. 2014-16
Figure 15: Consumers who have rated their financial health as Tight (I’m making ends meet, but only just) and Struggling (I’m in danger of falling behind with bills or loan repayments), NI and RoI. 2014-16
Discounters lack presence online
Figure 16: Consumers who agreed that the option to shop online would entice them to shop (or shop more) in discounters, by age, NI and RoI, February 2016
COMPETITIVE STRATEGIES – WHAT YOU NEED TO KNOW
Discounters are unstoppable as store expansion continues
Aldi expands premium range for shoppers demanding luxury
Lidl launches new inaugural store format
Poundland and Poundworld enter online retailing
Discounters extend ranges to tap into consumer demand for variety
WHO’S INNOVATING?
Level of NPD increased by 13% in 2015
Figure 17: Number of new products launched by discounters, UK and Ireland, 2001-16
Food a key area for NPD
Figure 18: New products launched by Aldi and Lidl, by sub-category, UK and Ireland, 2015
Beauty and personal care items prove popular in discounters
Meat products are the most popular for NPD
Figure 19: New products launched by Aldi and Lidl, by sub-category, UK and Ireland, 2010-16
NPD with ethical packaging increases by 25%
Figure 20: New food and drink (non-alcoholic and alcoholic) products launched by Aldi and Lidl, by top claims, UK and Ireland, 2010-16
COMPANIES AND BRANDS
Aldi
Key facts
Growth strategy
Recent developments
Bargain Buys
Key facts
Growth strategy
B&M
Key facts
Growth strategy
EuroGiant
Key facts
Growth strategy
Lidl
Key facts
Growth strategy
Mr Price
Key facts
Growth strategy
Home Bargains (TJ Morris Ltd)
Key facts
Growth plans
Recent developments
Poundland/Dealz
Key facts
Growth strategy
Poundstretcher
Key facts
Growth plans
Recent developments
Poundworld
Key facts
Growth strategy
Recent developments
Savers
Key facts
Growth strategy
THE CONSUMER – WHAT YOU NEED TO KNOW
Food discounters prove most popular among Irish consumers
Enticements to shop more in discounters differ between the two regions
Lidl proves popular among NI and RoI shoppers
Figure 21: Stores that consumers have stopped at in the last three months, by frequency, NI and RoI, February 2016
Frequent shopping at Lidl more popular in RoI
Figure 22: Frequency of consumers shopping at Lidl in the last three months, NI and RoI, February 2016
A third shop in Aldi
Figure 23: Consumers who shopped in Lidl once per week in the last three months, by residence, RoI, February 2016
A quarter visited B&M
Figure 24: Consumers who shopped in B&M two or three times per month in the last three months, by
age of children, NI, February 2016
Poundland/Dealz visited mostly once per month
Figure 25: Consumers who shopped in Poundland/Dealz at least once per month in the last three months, by age, NI and RoI, February 2016
Figure 26: Types of food products consumers have purchased from discounters in the last three months,
NI and RoI, February 2016
Figure 27: Types of non-food products consumers have purchased from discounters in the last three months, NI and RoI, February 2016
Figure 29: Responsibility for different cleaning tasks in families, by gender, UK, October 2014
from food or non-food discounters in the last three months, by age, NI and RoI, February 2016
Personal care items purchased by six in 10
Figure 32: Consumers who have purchased personal care items (e.g. soap, deodorant, toothpaste) from food or non-food discounters in the last three months, by gender and age, NI and RoI, February 2016
BOGOF the biggest enticement to shop in discounters
Figure 33: Factors that would encourage consumers to shop (or shop more often) in discounters, Ni
and RoI, February 2016
More well-known brands a considerable enticement
Multibuy offers appeal to parents
Figure 34: Consumers who agreed that more multibuy promotions (e.g. buy one get one free) would
entice them to shop (or shop more often) in discounters, by age of children, NI and RoI, February 2016
Higher-quality products would entice more men
Figure 35: Consumers who agreed that higher-quality products would entice them to shop (or shop more often) in discounters, by gender, NI and RoI, February 2016
Figure 36: Three least bought items in food or non-food discounters in the last three months, NI and RoI, February 2016
Non-food discounters could look to fresh food
Figure 37: Consumers who agreed that an in-store bakery and more fresh food would entice them to
shop (or shop more often) in discounters, NI and RoI, February 2016
Definition
Data sources
Generational cohorts
Abbreviations
APPENDIX – THE CONSUMER
NI Toluna data tables
Figure 38: Frequency with which consumers have shopped in Poundland / Dealz in the last three
months, by demographics, NI, February 2016
Figure 39: Frequency with which consumers have shopped in Lidl in the last three months, by demographics, NI, February 2016
Figure 40: Frequency with which consumers have shopped in Poundworld in the last three months, by demographics, NI, February 2016
Figure 41: Frequency with which consumers have shopped in Home Bargains in the last three months, by demographics, NI, February 2016
Figure 42: Frequency with which consumers have shopped in B&M in the last three months, by demographics, NI, February 2016
Figure 43: Frequency with which consumers have shopped in Poundstretcher in the last three months, by demographics, NI, February 2016
Figure 44: Frequency with which consumers have shopped in Savers in the last three months, by demographics, NI, February 2016
Figure 45: Frequency with which consumers have shopped in Bargain Buys in the last three months, by demographics, NI, February 2016
Figure 46: Frequency with which consumers have shopped in Around a Pound in the last three months, by demographics, NI, February 2016
Figure 47: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, NI, February 2016
Figure 48: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, NI, February 2016 (continued)
Figure 49: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, NI, February 2016 (continued)
Figure 50: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, NI, February 2016 (continued)
Figure 51: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, NI, February 2016
Figure 52: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, NI, February 2016 (continued)
Figure 53: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, NI, February 2016 (continued)
RoI Toluna data tables
Figure 54: Frequency with which consumers have shopped in Poundland / Dealz in the last three
months, by demographics, RoI, February 2016
Figure 55: Frequency with which consumers have shopped in Aldi in the last three months, by demographics, RoI, February 2016
Figure 56: Frequency with which consumers have shopped in Lidl in the last three months, by demographics, RoI, February 2016
Figure 57: Frequency with which consumers have shopped in B&M in the last three months, by demographics, RoI, February 2016
Figure 58: Frequency with which consumers have shopped in Savers in the last three months, by demographics, RoI, February 2016
Figure 59: Frequency with which consumers have shopped in Bargain Buys in the last three months, by demographics, RoI, February 2016
Figure 60: Frequency with which consumers have shopped in EuroGiant in the last three months, by demographics, RoI, February 2016
Figure 61: Frequency with which consumers have shopped in Mr Price in the last three months, by demographics, RoI, February 2016
Figure 62: Frequency with which consumers have shopped in Euro 2 in the last three months, by demographics, RoI, February 2016
Figure 63: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, RoI, February 2016
Figure 64: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, RoI, February 2016 (continued)
Figure 65: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, RoI, February 2016 (continued)
Figure 66: Types of products consumers have purchased from food or non-food discounters in the last three months, by demographics, RoI, February 2016 (continued)
Figure 67: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, RoI, February 2016
Figure 68: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, RoI, February 2016 (continued)
Figure 69: Factors that would encourage consumers to shop (or shop more often) in discounters, by demographics, RoI, February 2016 (continued)
Figure 70: Consumers who have visited food vs/ non-food discounters once per week, by demographics,
NI, February 2016
Figure 71: Consumers who have visited food vs/ non-food discounters once per week, by demographics, RoI, February 2016
UK RESEARCH METHODOLOGY
Consumer research
Sampling and weighting
Qualitative Research
Further Analysis
Brand & Social Media Research
Trade research
Informal
Formal
Desk research
Statistical Forecasting

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