Retail News|June 2020|www.retailnews.ie|5
News personal care. “In terms of the baking category, sales of flour alone have risen 200% and we have also seen a rise in demand for related products such as toppings, mini marshmallows and core baking ingredients like raising agents, flavourings and food colourings. Similarly in terms of personal care, we have seen soap sales soar by 400% and over the course of the past number of months, our stores have sold enough toilet paper to go around the world eight times.” Tesco also recorded formidable sales growth this month. Its typically larger stores allowed it to capitalise on the increase in trolley shops and the grocer grew by 23.7% to hold 21.8% of the market. Dunnes also gained from shoppers spending more in-store, spending an extra €10.39 per trip compared with last year, and it recorded healthy growth of 18%. This was slightly behind the market, linked partly to Dunnes not having a direct online grocery offer. Lidl benefited from its Dublin stronghold to boost sales by 30.5% and held its market share at 12%, while Aldi performed strongest in the south of the country, growing overall sales by 20.8%
to hold an 11.7% share. Lockdown has continued to drive up online grocery shopping, with sales through digital platforms increasing by 76% year on year. “Demand for online groceries has soared over the past few months and 15% of Irish households received at least one online delivery over the latest 12 weeks, a significant increase from 9% last year,” revealed Emer Healy. “This sudden surge in demand meant that the retailers had to act quickly to increase their online capacity, and have been rightly praised for extending their services to those who need them most. That includes reaching groups who are more vulnerable in the current crisis, with an additional 26,000 retired households ordering an online delivery over the 12 weeks to May 17 and over-65s spending an extra €8.9m online.” Martin Kelleher also referred to the “spike” in online shopping, resulting in the group scaling up its service by hiring more drivers and in-store colleagues to meet demand. “The growth we have seen in home deliveries is the equivalent to opening 12 new SuperValu stores,” revealed the SuperValu Managing
Director. Shoppers aren’t limiting themselves to food and drink essentials and it seems that some are preparing to look their best as lockdown eases. Emer Healy continues: “With hair salons closed, shoppers took matters into their own hands and sales of haircare products and hair colourants were up 25% and 73% as they prepared to see friends and family in phase two of the lockdown following the loosening of restrictions on May 18.” Despite the circumstances, people have sought to buoy spirits and enjoy themselves in the sunny spring weather. “Friday May 1, the day before the early May bank holiday weekend, was worth €52.8m, as consumers prepared for a weekend of sunshine. The holiday, coupled with a month of warm temperatures, meant that alcohol sales grew by a staggering 93% over the latest four weeks. It seems many of us enjoyed the barbecue weather as shoppers spent an additional €3.8m on sausages and burgers. Ice cream sales were worth an extra €5.9m.” Grocery market inflation stands at 2.3% for the 12-week period ending May 17, 2020.
Bord Bia predicts foodservice decline of up to 60% BORD Bia has published a White Paper charting three possible scenarios for the Irish foodservice industry for the rest of 2020, as the industry moves to a phased reopening in a transformed operating environment following the huge impact of Covid-19. Based on a ‘best case scenario’ and taking into account the impact of falling tourism figures, the out-of-home market in Ireland is predicted to fall in value from €8.5 billion at the beginning of 2020 to €4.7 billion by the end of this year, while their ‘worst case scenario’ would see the market decline by almost 60% to €3.7 billion. Taking market values as published by Bord Bia to the end of 2019, the White Paper, co-authored by global foodservice research specialists Technomic, outlines recommendations and supports available to business as they forward plan and adapt their positioning, products and services. “While acknowledging the clear and ongoing damage to the Irish foodservice market, it is also important to begin thinking about how the industry re-starts and what permanent changes may ultimately “stick” into the future,” stressed Maureen Gahan, Foodservice Specialist, Bord Bia. “We understand from listening to food and drink suppliers servicing this market that access to timely data and insights is crucial for them as they look to revise their plans and activities for the second half of 2020. “The out-of-home channel was one of the most severely impacted by Covid-19, not just in Ireland, but world-wide, experiencing a near total collapse due to the temporary shutdown of the hospitality sector. However, we also know that it is a hugely resilient industry and we have already seen a number of outlets transitioning their businesses to take-away and home delivery. Similarly, we have seen examples from our food and beverage producers that are pivoting their businesses to meet the new needs of their foodservice customers.”
White Paper Co-author, David Henkes, Technomic, said, “Foodservice will certainly see contractions in 2020, erasing years of growth and share gain from the retail sector. However, we remain bullish on the longer-term viability and resurgence of the industry, as the economy recovers and as consumers grow more confident living in the age of Covid-19.” The full report is available on bordbia.ie.
Maureen Gahan, Foodservice Specialist, Bord Bia.
