Abstract
In response to increasing demand for data concerning the dynamic economy and growth markets of Northern Ireland and The Republic of Ireland, Mintel has developed a series of reports covering a wide variety of sectors within both of these dynamic regions. Each one provides detailed coverage of key drivers as well as providing the very latest volume and value data. Also included are assessments of emerging trends, the activities of existing market players, brand ownership details, supply structures, future scenarios and statistical forecasts.
The Irish Series is segmented according to Mintel' s existing report definitions, namely Finance, Leisure, Market, Retail and ' Specials' . This provides unparalleled coverage and will be a must for all companies who are either already active in this region, or will be looking to enter these distinct marketplaces in the future.
This report has been produced as part of Mintel' s Irish Series and is sold in Ireland exclusively through our sales agency OCO Consulting based in Belfast.
Table of Contents
- Introduction
- Bye bye independent grocer
- New challenges ahead
- Our aim
- Definitions
- Geographical, national and regional definitions
- Insights and Opportunities
- Stores within stores
- Dedicated service staff
- Symbol Internet shopping
- Symbol own labels
- Market in Brief
- Most shopping is bought from Multiples
- Tesco dominates
- Convenient location is the most important store feature to consumers
- Why shop in a multiple or a symbol?
- Multiples perform proportionately better in NI
- Distinct target groups emerge
- What happens next?
- Internal Market Environment
- How symbols compete with multiples' product offerings
- Buying power of multiples allows for drawing the masses...
- ...but symbols try to replicate this effect...
- ...though key issues still hinder their competitiveness...
- Farmers Markets, local and artisan producers grow in numbers and popularity...
- ...but innovative symbols can benefit from the trend...
- ...but may not necessarily build competitive advantage over multiples
- Foreign influences and new tastes...
- ... which multiples can take better advantage of...
- ... but symbols are not entirely excluded
- Convenience is key for younger consumers
- ... which means symbols locations compete with multiples products
- Deli counters offer success...
- ... for those that keep pace with changes...
- ... and offer diverse selection...
- ... with more offerings in the pipeline
- Deregulation makes for more aggressive competition
- Abolition of groceries order...
- ... benefits the consumer...
- ... but leads to controversy surrounding alcohol promotion...
- ... and causes worry among small retailers and symbols...
- Figure 1: Consumer price index for all items and for food, RoI, 2001-06
- ...and leads to more aggressive competition among the multiples
- Shoppers more willing to travel
- Figure 2: Distance travelled to shop, NI & RoI, 2002-06
- NI Consumers are more prepared to travel to shop...
- ...while RoI consumers increase focus on convenience
- Figure 3: Transport used by type, NI & RoI, 2006
- Transport issues accentuate these trends
- Multiples keep Internet shopping to themselves...
- ... but factors inhibit this feature
- Figure 4: Agreement to selected statements, NI & RoI, 2002-06
- Rising costs remain a prominent issue for retailers
- Wages are on the rise...
- ... while oil drives the largest cost increases...
- ... but the property market does not deter investment...
- ... and the small symbols will ultimately suffer
- Environmental and planning issues affect retailers' strategies
- Plastic bag levy has positive and negative effects...
- ... primarily affecting symbols...
- ... but may result in further initiatives...
- ... as government and consumers become more environmentally conscious...
- ... and may influence the future in NI
- Many multiples and larger symbols are classified as major producers of packaging waste...
- ... but have reduced their obligations by joining Repak...
- ... while smaller symbols have lesser obligations
- Waste and Resources Action Programme has impact on UK and NI
- Planning restricts retail development...
- ... which helps maintain symbols' position
- Product safety and packaging is paramount for retailers
- Consumer confidence shaken by bird flu...
- ... but RoI market is recovering...
- ... while NI market is slower to recover...
- ... and effects are passed on to retailers
- ... as consumers look at their options
- Food legislation is a key issue for the food industry...
- ... and for multiples and symbols...
- ... but retailers can use it to their advantage...
- ... though caution is still required
- FSA has limited success with signposting in the UK
- ... but no uniform approach may lead to confusion
- Broader Market Environment
- Demographic make-up is changing
- NI population is aging, while numbers of minors fall
- Figure 5: Population change by age group, NI, 2000-20
- RoI population changes will have less severe impacts
- Figure 6: Population change by age group, RoI, 2000-20
- Positive net migration drives RoI population growth
- Figure 7: RoI residents by nationality, 2006
- ... which has varying impacts for retailers
- ... opening opportunities for new products...
- ... and new labour...
- ... but it is business as usual for NI
- Dublin maintains the majority of the population...
- Figure 8: Populations of major cities, counties and satellite towns in RoI, 2002-06
- ...But may not be the future focus
- NI statistics reflect similar trends, to a lesser extent
- Figure 9: Population of major administrative areas in NI, 2005
- Household size
- Figure 10: Change in household size for RoI and NI, 1999-2005
- The economic climate presents further opportunity for retailers
- Figure 11: Health of the economy, NI and RoI, 2005-07
- Market Size and Share
- Figure 12: Market share of multiples, symbols and hard discounters, NI and RoI, 2006
- Figure 13: Market share for major multiples and symbols in the RoI, 2006
- Figure 14: Market share for major multiples and symbols in NI, 2006
- Retailer Profiles and Developments
- Multiples
- Figure 15: Multiples outlet numbers in RoI and NI, 2007
- Aldi
- Asda
- NI Co-op
- Dunnes Stores
- Iceland
- Marks & Spencer
- Sainsbury' s
- Lidl
- Superquinn
- Tesco
- Symbols
- Figure 16: Retailer outlet numbers and outlet types, NI and RoI 2007
- AMD Londis
- Costcutter
- Gala Group
- Hendersons
- Mace Group
- Musgrave SuperValu-Centra (MSVC) Group
- Spar
- Other market participants and new market entrants
- Consumer Shopping Trends
- Figure 17: Where consumers most shop by type of retailer, 2006
- Figure 18: Where consumers ever shop and shop most often, NI and RoI, 2006
- Tesco leads the way in RoI...
- ...And even more so in NI
- Symbols and hard discounters benefit from supplementary shopping
- M&S draws a significant amount of customers for supplementary shopping
- Consumer Attitudes
- Figure 19: Importance of retailer features selected by percentage of consumers
- Figure 20: Top selected features by RoI multiples' customers
- Aldi' s customers quench doubts as to hard discounters' quality
- Price focused consumers choose Tesco over Dunnes
- Brand conscious consumers flock to Dunnes
- Figure 21: Top selected features by RoI symbols' customers, 2007
- Time poor consumers look to the symbols
- Quality to be found in symbols...
- ... but at what price
- Supervalu caters for the masses
- Opportunities and implications
- Figure 22: Top selected features by NI multiples' customers, 2007
- Asda customers focus on price but Sainsbury' s has the edge on quality
- Lidl and Iceland battle for the price sensitive consumer
- Dunnes offers range and service
- M&S proves its quality
- Figure 23: Top selected features by NI symbols' customers, 2007
- Convenience of symbols drives them forward
- Do smaller shops mean better service?
- Opportunities and Implications
- Consumer Cluster Analysis
- Figure 24: Consumer clusters, ni and RoI, 2007
- RoI clusters
- Price Sensitive -- 21%
- Figure 25: Key features of the Price Sensitive cluster, 2007
- Opportunities and implications
- Indifferent -- 28%
- Figure 26: Key features of the Indifferent cluster, 2007
- Opportunities and implications
- Quality Focused -- 22%
- Figure 27: Key features of the Quality Focused cluster, 2007
- Opportunities and implications
- Broad Spectrum -- 15%
- Figure 28: Key features of the Broad Spectrum cluster, 2007
- Opportunities and implications
- Fast Paced -- 14%
- Figure 29: Key features of the Fast Paced cluster, 2007
- Opportunities and implications
- NI clusters
- Product Focused -- 15%
- Figure 30: Key features of the Product Focused cluster, 2007
- Opportunities and implications
- High Agenda -- 21%
- Figure 31: Key features of the High Agenda cluster, 2007
- Opportunities and implications
- Cost Conscious -- 20%
- Figure 32: Key features of the Cost Conscious cluster, 2007
- Opportunities and implications
- Care Free -- 25%
- Figure 33: Key features of the Care Free cluster, 2007
- Opportunities and implications
- Service orientated -- 19%
- Figure 34: Key features of the Service Orientated cluster, 2007
- Opportunities and implications
- The Future
- Multiples and symbols face competition from outside the food retailing sector...
- ...but there is still potential to pose threats to each other
- Outlook for competition between multiples
- Time saving initiatives
- Growth in high end food
- Development of ethnic markets
- Appendix
- Conversion Factors
- Exchange rate
- Population 2005
- BMRB Target Group Index (TGI) sample sizes
- Abbreviations
- Notes on life expectancy forecasting
- Multiple and symbol market worth €13 billion
- Figure 35: Market size for multiples and symbols in Ireland, 2000-06 at current market prices
- Figure 36: Market size for multiples and symbols in RoI, 2000-06
- Figure 37: Market size for multiples and symbols in NI, 2000-06 at current market prices
- Figure 38: Where consumers shop most, multiples, by demographic groups, RoI, 2007
- Figure 39: Where consumers shop most, symbols, by demographic groups, 2007
- Figure 40: Where consumers shop most, multiples, by demographic groups, NI, 2007
- Figure 41: Where consumers shop most, multiples, by demographic groups, NI 2007
- Figure 42: Where consumers shop most, symbols, by demographic groups, NI 2007
- Figure 43: Where consumers shop most, symbols, by demographic groups, NI, 2007
- Figure 44: Retailer features selected by Aldi customers, RoI, 2007
- Figure 45: Retailer features selected by Dunnes Stores customers, RoI, 2007
- Figure 46: Retailer features selected by Lidl customers, RoI, 2007
- Figure 47: Retailer features selected by Superquinn customers, RoI, 2007
- Figure 48: Retailer features selected by Tesco customers, RoI, 2007
- Figure 49: Retailer features selected by Centra customers, RoI, 2007
- Figure 50: Retailer features selected by Londis customers, RoI, 2007
- Figure 51: Retailer features selected by Spar customers, RoI, 2007
- Figure 52: Retailer features selected by Supervalu customers, RoI, 2007
- Figure 53: Retailer features selected by Asda customers, NI, 2007
- Figure 54: Retailer features selected by Dunnes Stores customers, NI, 2007
- Figure 55: Retailer features selected by Iceland customers, NI, 2007
- Figure 56: Retailer features selected by Lidl customers, NI, 2007
- Figure 57: Retailer features selected by M&S customers, NI, 2007
- Figure 58: Retailer features selected by Sainsbury' s customers, NI, 2007
- Figure 59: Retailer features selected by Tesco customers, NI, 2007
- Figure 60: Retailer features selected by Centra customers, NI, 2007
- Figure 61: Retailer features selected by Co-op customers, NI, 2007
- Figure 62: Retailer features selected by Costcutter customers, NI, 2007
- Figure 63: Retailer features selected by Mace/Nearbuy customers, NI, 2007
- Figure 64: Retailer features selected by Spar customers, NI, 2007
- Figure 65: Retailer features selected by Supervalu customers, NI, 2007
- Figure 66: Agreement with convenient location by demographic group, NI and RoI, 2007
- Figure 67: Agreement with convenient location by area, NI and RoI, 2007
- Figure 68: Agreement with good parking facilities by demographic groups, NI and RoI, 2007
- Figure 69: Agreement with good customer service by demographc group, NI and RoI, 2007
- Figure 70: Choice of less crowded feature by demographic group, NI and RoI, 2007
- Figure 71: Choice of 24 hour shopping feature by demographic groups, NI and RoI, 2007
- Figure 72: Choice of home delivery feature by demograhic group, NI and RoI, 2007
- Figure 73: Choice of is the cheapest feature by demographic group, NI and RoI, 2007
- Figure 74: Choice of loyality points scheme by demographc group, NI and RoI, 2007
- Figure 75: Choice of regular promotions feature by regular promotions, NI and RoI, 2007
- Figure 76: Choice of quality of food feature by demographic group, NI and RoI, 2007
- Figure 77: Choice of range of food feature by demographic group, NI and RoI, 2007
- Figure 78: Choice of stock levels feature by demographic group, NI and RoI, 2007
- Figure 79: Choice of well known brands feature by demographic group, NI and RoI, 2007
- Figure 80: Choice of good selection of own label products feature by demographic group, NI and RoI, 2007
- Figure 81: Choice of good selection of healthy eating/low fat foods by demographic groups, NI and RoI, 2007
- Figure 82: Choice of selection of non-food items by demographic group, NI and RoI, 2007
- Figure 83: Demographic make-up of RoI clusters, N RoI, 2007
- Figure 84: Demographic make-up of NI clusters, NI, 2007
