Ireland's economy experienced significant growth in 2023, with the country's Central Statistics Office (CSO) reporting a 5% expansion in gross national income (GNI). The labour market also showed strong performance, achieving record low unemployment rates.
Minister for Finance Jack Chambers has attributed the improved economic performance to strong consumer spending, despite the significant inflationary pressures that have affected households in recent months.
The consumer price index (CPI) in Ireland rose by 2.2% between June 2023 and June 2024, compared to a 2.6% increase in the 12 months to May 2024. This is the eighth time since September 2021 that the annual CPI growth was below 5% and the eighth consecutive month with an inflation rate lower than 5%.
Significant price increases over the 12 months to June 2024 were noted in Transport (+4.9%) and Restaurants & Hotels (+4.4%), driven by higher costs for diesel (+12.8%) and petrol (+9.3%). The Food & Non-Alcoholic Beverages category, meanwhile, saw price increases for products such as vegetables, mineral waters, soft drinks, fruit and vegetable juices, and other bakery products and cereals.
Conversely, Clothing & Footwear (-6.7%) and Furnishings, Household Equipment & Routine Household Maintenance (-1.1%) were the only divisions to show a decrease compared to June 2023.
On a month-on-month basis, consumer prices grew by 0.4% from May 2024 to June 2024.
Recent data from Kantar revealed a 3.4% increase in take-home grocery sales in Ireland for the four weeks ending 9 June 2024. The market research firm reported a 1.5% increase in store trips and a 1.3% increase in average prices. However, volume per trip decreased by 1.2% compared to the same period last year, a change from the previous month's small rise of 0.2%.
Despite the continued fall of inflation providing some relief in terms of lower prices, Irish consumers still prioritise value, with over 25% of value sales during the period purchased on promotion.
Elsewhere. the S&P Global Ireland Business Outlook survey suggested that Irish business confidence in output growth remains stronger than the global average. Irish businesses’ expectations were the second-strongest in Europe at 39%, behind the UK at 44%, and well above the Eurozone average of 20% in June, which was weighed down by Germany (14%) and France (13%).
Key areas expected to drive business opportunities include new product ranges, tourism, international demand, higher sustainability budgets, digitisation, artificial intelligence, and increased consumer spending as the cost of living eases.
At the same time, young people continue to face financial challenges, with a recent CSO study finding that the majority of young adults (62%) living with their parents do so for financial reasons.
Here's an overview of the top ten supermarket retail chains in Ireland, according to their most recently-available full-year turnover. All data is supplied by Retail-Index.
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1. Musgrave Group
Turnover: €4.5 billion (2022)
The Musgrave Group is the leading retail and wholesale business in Ireland with a turnover of €4.5 billion in 2022. The family-owned company operates a variety of retail chains including SuperValu, Centra, Daybreak and Day Today.
The group operates 840 stores across Ireland as of this year. Musgrave Group has a 147-year heritage in food and retail.
2. Dunnes Stores
Turnover: €4.1 billion (estimated, 2021)
Dunnes Stores is a privately-owned Irish retailer with an estimated turnover of €4.1 billion in 2021. It operated an estimated 116 stores throughout Ireland as of last year, and also trades in fashion, textiles and homewares, as well as food.
With a market share of 23.4% and growth of 6.2%, year on year, Dunnes Stores maintained its position as Ireland’s top retailer in the 12 weeks to 9 June, according to the latest market share data from Kantar.
In February 2023, Dunnes Stores acquired Dublin-based same-day delivery company Buymie.
3. Tesco Ireland
Turnover: €2.9 billion (2022)
In third place. Tesco Ireland reported a turnover of €2.9 billion in 2022. The retailer operates more than 154 outlets (as of 2023) across the country under various banners, including Tesco Extra, Tesco Express, and Tesco Metro.
Tesco has had a permanent presence in Ireland since 1997, when it acquired the Powers Supermarkets business, however it also traded in the country for a period in the 1980s.
4. Aldi Ireland
Turnover: €2 billion (2021)
Aldi Ireland reported a turnover of €2 billion in 2021. The company has 150 stores in Ireland as of 2023.
Part of the Aldi Süd network, Aldi first entered the Irish market in 1999.
5. SPAR
Turnover: €1.56 billion (2022)
SPAR Ireland, operated by BWG Foods, recorded a turnover of €1.56 billion in 2022. The group currently operates 1,030 stores across Ireland, under the banners SPAR, EUROSPAR, Londis, Mace, Value Centre and XL stores as of 2023.
Last year, SPAR and EUROSPAR announced plans to add 60 new stores to their combined network in Ireland by 2025. The project will see an investment of €65 million from BWG Foods, as well as contributions from independent SPAR and EUROSPAR retailers.
6. Lidl Ireland
Turnover: €1 billion (estimated, 2021)
Lidl Ireland, part of the international Schwarz Group, reported an estimated turnover of €1 billion in 2021.
The company operates over 187 outlets in Ireland as of 2023. Lidl first entered the Irish grocery market in 2000.
7. Iceland
Turnover: €65 million (2022)
Iceland reported a turnover in Ireland of €65 million in 2022, from a network of 27 outlets across the country .
Last year, the Irish Examiner reported that Iceland had sold all the 27 stores it directly owns in Ireland to a new franchise owner, The Project Point Technologies, which will operate the outlets going forward.
8. Fresh The Good Food Market
Turnover: €28 million (2021)
Fresh The Good Food Market launched in Ireland in 2006, when the first Fresh supermarket opened its doors in Smithfield Village in Dublin 7.
The group had an annual turnover €28 million in 2021 and currently operates nine stores as of 2023.
9. Gala
Turnover: N/A
Gala Retail is a convenience store chain, operating a total of 169 stores under its Gala and Gala Express banners as of 2023. The business was launched in 1998 by a group of Irish wholesalers.
10. Costcutter
Turnover: N/A
Operated by Cork's Barry Group, Costcutter had 77 stores in Ireland as of 2022.
About Retail-Index
Retail-Index is a specialist supplier of management information on consumer retail markets, provided by Veraart Research Group in the Netherlands. Its mission is to supply managers with up-to-date key information on retail markets in Europe and support them in their international expansion.
The company dates back to 1964, when it started as a market research and marketing consulting company for consumer products and services. In 1989, it started publishing written reports on various retail sectors in Europe. As of 2005, it publishes its information on retailers through the online database and curated datasheet exports available on www.retail-index.com. A team of researchers manages the data to reflect upon current developments in the markets, collected from an extensive number of sources.
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© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Robert McHugh. Click subscribe to sign up to ESM: European Supermarket Magazine.
