One of the most competitive business sectors in Ireland is the grocery sector. 2016 looks like a year of growth.
The grocery business is a tough business. Only the good succeed, and the best will grow.
In 2015, SuperValu and Tesco battled for the top spot, while Dunnes regained slight market share (up 0.3% to 23.8%) thanks to a strong discounting strategy.
The German discounters, Aldi and Lidl, experienced a slight drop in their market growth for the first time since 2008. Their current combined market share is c.20%.
In the symbol group sector, Centra and Spar continued to perform very well, indicating a return to convenience shopping by the consumer.
What to expect in 2016
In 2016, we can expect to see more aggressive promotional activity from Tesco and Dunnes in a bid to take share back from SuperValu and the discounters.
There is also a rumoured reallocation of resources by Aldi and Lidl to focus on the UK market where both brands are under-represented.
Revamp activity in the independent, symbol group sector also looks likely to increase.
It’s an absorbing industry.