Dunnes Stores have experienced a sales surge and grown their market share considerably in the process over the course of the second quarter of 2015.
While many might have expected a decrease in sales for the Irish retailer after a tumultuous period of high profile industrial action and strikes by disgruntled staff, Dunnes has actually went from strength to strength.
This has been largely attributed to their ‘Shop & Save’ voucher scheme.
Shelfwatch reported in June that Dunnes had increased its market share despite some negative press surrounding the industrial action. The latest figures from Kantar Wordlpanel show that not only did Dunnes once again gain more control of the market, they experienced a higher growth than all of their competitors.
There was a 6.3 percent increase in sales for Dunnes over 12 weeks that make up the second quarter of 2015. This is in contrast to Supervalu’s minimal growth in terms of the average value of sales, while Tesco’s average value decreased. This leaves Dunnes as the sole major supermarket able to compete with the German discounters Aldi and Lidl in terms of over-the-counter sales growth.
Insight manager Cliona Lynch from Kantar Worldpanel explained: “Dunnes continued focus on its ‘Shop & Save’ voucher scheme is encouraging consumers to buy a bigger basket on each shop.”
“The average Dunnes visitor is buying 18 items per trip compared with a market average of 13 – an increase of three items per basket on this time last year and an additional €5 through the tills on each shop,” she added.
“As the discounters become more established in the market, year-on-year growth is harder to win. While both Aldi and Lidl are still seeing a strong performance and gains in market share, the landscape is becoming more competitive.
“The impact of Dunnes’ vouchering campaign has given it a strong boost this period.”