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
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