Table of Contents
Issues in the Market
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- Key themes in the report
- Definition
- Store definition
- Food definition
- Drink definition
- Abbreviations
Insights and Opportunities
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- Open kitchen
- Off-peak shopping
- Fuel worries
Fast Forward Trends
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- Trend 1: World Gone Green
- What's it about?
- What we've seen
- What next?
- Trend 2: Trust in me
- What's it about?
- What we have seen
- What next?
- Trend 3: Cool Vending
- What's it about?
- What we've seen
- Implications
- What next?
Market in Brief
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- Positive outlook despite downturn in economy
- Competitive retail environment
- Impact of the strong euro – NI retailers prove cheapest option
- End of the cheap food era
- Shopping behaviour
- Future trends in Ireland’s food retail sector
- Transparency
- Experiential shopping
- Return to the high street
- Eating and drinking habits
Internal Market Environment
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- Key points
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- Figure 1: Key internal influences in NI and RoI food retail market, 2008
- Snapshot of how Ireland’s food retail sector has evolved
- Women still take charge of grocery shopping task
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- Figure 2: Go shopping, by gender, NI and RoI, 2007
- Popularity of high-street/town-centre shopping
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- Figure 3: Type of shop consumers are most likely to go to for their grocery shop, by type of shopping trip, NI and RoI, 2007
- Out-of-town facilities appeal
- Poor consumer take-up online for groceries
- Consumer purchases online
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- Figure 4: Purchases via internet in the last 12 months – all adults, NI and RoI, June 2007
- Price is a primary motivator
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- Figure 5: Agreement with attitudinal statements – all adults, NI and RoI, June 2007
- Grocery shopping becomes less confined to the weekend
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- Figure 6: Grocery shopping, by day, NI and RoI, 2004-07
- Price, convenience and quality are deciding factors when grocery shopping
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- Figure 7: Most important deciding factors when grocery shopping, NI and RoI, 2007
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- Figure 8: Shopping for groceries: Distance travelled: Main shopping, NI and RoI, 2002-07
- Infrastructure network plays key role in getting consumers in-store
- Growing strength of the euro
- Fuel war opens up window of opportunities
- Increased impulse sales by capitalising on fuel demand
Broader Market Environment
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- Key points
- Knock-on effect from downturn in economy
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- Figure 9: Ireland’s economic situation, RoI and NI, 2006-08
- Retail sales suffer due to poor confidence in economy
- Credit crunch drives demand for better value
- An extra £40 per week for basic living costs
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- Figure 10: Price of petrol per litre, in £, NI and RoI, 2000-07
- Are NI consumers worse off than those in GB?
- Rising costs of living in RoI
- Rise of ethnic communities
- Overall death statistics show decline
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- Figure 11: Number of births and deaths, RoI and NI, 2001-06
- Reaping the benefits from Ireland’s grey market
Consumers and Cost
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- Key points
- Global food prices to remain high
- Absorbing suppliers’ rising business costs
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- Figure 12: Percentage difference in CPI sub-indices over 12 months, RoI and UK, July 2008
- Some reasons driving the inevitable rise in food prices
- Food price hikes force more consumers to fork out extra cash
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- Figure 13: Amount spent on groceries in the last week, NI and RoI, 2002-07
- Impact on shopping behaviour
Retailer Strategies
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- Key points
- Rip-off RoI?
- Multiple vs symbol retailer prices
- Retailers increasingly sell their ethical credentials
- Recycling policies set to get stricter
- LGA results reveal heavy reliance on packaging by retailers
- Expansion of non-food lines
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- Figure 14: Supermarkets’ evolution into ‘one-stop-shops’, 2008
Who’s Innovating?
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- Key points
- Health is a major driver across categories
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- Figure 15: New product launches in the UK and RoI, by top product claims*, July 2007-08
- Innovative sub-categories
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- Figure 16: Most dynamic product categories in the UK and RoI, by top sub-category, July 2007-08
- Retailers do their bit for NPD
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- Figure 17: New product development* recorded in the UK and RoI, by most innovative companies,
- M&S leads the way in banishing the bags
- Improving customer service
- Scan and go checkouts
- Smart trolleys
- High-tech benefits
- Website for the Poles
- Keeping food fresh for longer
- Localchoice milk is becoming a popular consumer choice
- Milk in a bag
Competitive Context
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- Key points
- Rising affluence brings little gain to the sector
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- Figure 18: Disposable income vs expenditure on food, UK (NI), 1975-2005
- How do Irish consumers plan to cut back in 2008?
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- Figure 19: Consumer responses to statement ‘When feeling the pinch, which of these are you most likely to do when trying to cut back your personal spending?’, NI and RoI*, January 2008
- Ireland’s social hubs
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- Figure 20: Market size and forecast of total out-of-home dining/socialising spend, NI, RoI and all Ireland, 2000-11
- Competing with Ireland’s social hubs
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Market Value and Forecast
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- Key points
- Ireland’s food retail market
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- Figure 21: Total all-Ireland food retail market value and forecast, 2003-13
- NI retail – a more competitive market
- Going forward
Company Insight
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- Key points
- Multiples
- Aldi (RoI only)
- Asda (NI only)
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- Figure 22: Asda own-label sub-brands
- NI Co-op
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- Figure 23: Co-operative Group own-label sub-brands
- Dunnes Stores
- Iceland (NI only)
- Lidl
- Marks & Spencer
- Sainsbury’s
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- Figure 24: Sainsbury’s Supermarkets: own-label sub-brands
- Superquinn
- Tesco
- Symbol group retailers
- AMD Londis
- Costcutter
- Gala Group
- Henderson’s group (NI only)
- BWG – Spar (RoI)
- Musgrave SuperValu-Centra (MSVC) group
Influencing Consumer Shopping Behaviour
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- Key points
- Shopping proves popular for Irish consumers
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- Figure 25: Agreement with selected statement ‘shopping for groceries is a bore’, relating to food and household items, NI and RoI, 2007
- NI consumers more inclined to think shopping is a bore
- What’s on Irish consumers’ ethical wish list?
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- Figure 26: Important ethical aspects when grocery shopping, NI and RoI, November 2007
- Dividing consumer opinion
- Does guilt play a part in purchasing choices?
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- Figure 27: Relevant statements regarding the environment and food and drink, NI and RoI, November 2007
- Fair trade vs reducing food miles – what do consumers want?
- Mounting price concerns adds to ethical predicament
- Shop smart – pay less
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- Figure 28: Consumer agreement with statements when doing their household shopping, NI and RoI, 2002-07
- Every penny counts
- The quest for special offers set to intensify
- How important is advertising?
- Irish consumers – impulse-driven or routine shoppers?
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- Figure 29: Consumer agreement to a range of shopping lifestyle statements, NI and RoI, 2007
- Anything for an easy life
- Cleaner labels – convenient nutrition
- Merchandising and service levels – at your convenience
Eating and Drinking Habits
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- Key points
- Is Ireland becoming a nation of Jamie Olivers?
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- Figure 30: Consumer attitudes towards food/shopping for food and eating, regarding experimenting at home, NI and RoI, 2002 and 2007
- Popularity of setting aside time for the family
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- Figure 31: Consumer attitudes towards food/shopping for food and eating, NI and RoI, 2002 and 2007
- Improved reputation for own-label products
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- Figure 32: Agreement with statement “On the whole I think well-known brands are better than a shop's own brand”, by socio-economic group, NI and RoI, 2007
- Everything in proportion?
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- Figure 33: Attitudes towards diet/lifestyle, NI and RoI, 2002 and 2007
- Retailers do their bit to encourage consumers to lead a balanced lifestyle
- Freshness sells
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- Figure 34: Consumer statements regarding food and eating habits, NI and RoI, 2002-07
- Exotic and ethnic tastes
Consumer Typologies
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- Key points
- RoI target groups
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- Figure 35: RoI target groups, according to attitudes towards food and drink shopping, 2007
- Life Floaters (24% of respondents)
- Characteristics
- Demographic pattern
- Understanding Life Floaters
- Money Stretchers (13% of respondents)
- Characteristics
- Demographic pattern
- Understanding Money Stretchers
- Wary Shoppers (15% of respondents)
- Characteristics
- Demographic pattern
- Understanding Wary Shoppers
- The Joneses (16% of respondents)
- Characteristics
- Demographic pattern
- Understanding The Joneses
- Del Boys (15% of respondents)
- Characteristics
- Demographic pattern
- Understanding Del Boys
- Trolley Dashers (16% of respondents)
- Characteristics
- Demographic pattern
- Understanding Trolley Dashers
- NI target groups
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- Figure 36: NI target groups according to attitudes towards food and drink shopping, 2007
- Un-reactive Shoppers (22% of respondents)
- Characteristics
- Demographic pattern
- Understanding Un-reactive Shoppers
- Penny Pinchers (15% of respondents)
- Characteristics
- Demographic pattern
- Understanding Penny Pinchers
- On-the-go Shoppers (19% of respondents)
- Characteristics
- Demographic pattern
- Understanding On-the-go Shoppers
- Strategic Shoppers (13% of respondents)
- Characteristics
- Demographic pattern
- Understanding Strategic Shoppers
- Flexible Shoppers (18% of respondents)
- Characteristics
- Demographic pattern
- Understanding Flexible Shoppers
- Stubborn Shoppers (14% of respondents)
- Characteristics
- Demographic pattern
- Understanding Stubborn Shoppers
Appendix
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- Exchange rate
- All-Ireland population projections
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- Figure 37: Population projections (million), NI and RoI, 2006-31
- Estimated population of the world
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- Figure 38: Estimated population of the world, 2000-40
- Travelling
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- Figure 39: Shopping for groceries: distance travelled, main shopping, NI and RoI, 2002-07
- Details of the NCA survey on retail pricing
- NPD
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- Figure 40: Product claims of new healthy food and drink launches, UK and Ireland, 2002 and 2007
- Frequency of visiting shops
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- Figure 41: Consumer responses to how frequently they visit shops for groceries: Any shopping, NI and RoI, 2004-07
- Health/diet
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- Figure 42: Attitudes towards diet/lifestyle, NI and RoI, 2002 and 2007
- Advertising
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- Figure 43: Overall advertising spend in RoI, 2005/06
- Any shopping
- NI
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- Figure 44: Type of outlet consumers are most likely to go to for their groceries: Any shopping, NI, 2007
- RoI
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- Figure 45: Type of outlet consumers are most likely to go to for their groceries: Any shopping, RoI, 2007
- Regular main shopping
- NI
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- Figure 46: Type of outlet consumers are most likely to go to for their groceries: Regular main shopping, NI, 2007
- RoI
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- Figure 47: Type of outlet consumers are most likely to go to for their groceries: Regular main shopping, RoI, 2007
- Top-up shopping
- NI
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- Figure 48: Type of outlet consumers are most likely to go to for their groceries: Top-up Shopping, NI, 2007
- RoI
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- Figure 49: Type of outlet consumers are most likely to go to for their groceries: Top-up shopping, RoI, 2007
- Shopping frequency
- NI
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- Figure 50: Shopping for groceries, frequency, any shopping, NI, 2007
- RoI
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- Figure 51: Shopping for groceries, frequency, any shopping, RoI, 2007
- Preferred shopping days
- NI
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- Figure 52: Days consumers go shopping: any shopping, NI, 2007
- RoI
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- Figure 53: Days consumers go shopping: any shopping, RoI, 2007
- Grocery expenditure
- NI
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- Figure 54: Shopping for groceries: spent on groceries last week, NI, 2007
- RoI
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- Figure 55: Shopping for groceries: spent on groceries last week, RoI, 2007
- Regular main shopping, frequency
- NI
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- Figure 56: Shopping for groceries, frequency, regular main shopping, NI, 2007
- RoI
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- Figure 57: Shopping for groceries, frequency, regular main shopping, RoI, 2007
- Distance travelled
- NI
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- Figure 58: Distance consumers travel for their groceries, NI, 2007
- RoI
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- Figure 59: Distance consumers travel for their groceries, RoI, 2007
- Shopping preferences
- NI
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- Figure 60: Consumers’ shopping preferences, NI, 2007
- RoI
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- Figure 61: Consumers’ shopping preferences, RoI, 2007
- Consumer typologies
- NI
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- Figure 62: Consumer target groups regarding a range of shopping statements, NI, 2007
- RoI
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- Figure 63: Consumer target groups regarding a range of shopping statements, RoI, 2007
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