Aisle be back: Competition from budget supermarkets and higher-end retail has squeezed the middle market

Over the five years through 2019, IBISWorld expects industry revenue to increase at a compound annual rate of 0.3%. The Irish supermarket landscape has changed drastically over the past decade. Despite rising household disposable income over the period, Irish consumers remain value conscious, which has spurred some households to switch from traditional grocers such as Tesco, to budget supermarkets such as Lidl and Aldi, limiting industry expansion to some extent. Meanwhile, however, demand for premium supermarkets remain strong with the likes of Dunnes Stores performing well over the period.Nonetheless, opportunities for growth remain...read more.

Industry Statistics & Market Size
Revenue
€16.5bn
Annual Growth 14-19
0.3%
Forecast Growth 19-24
Profit
Employment
76,455
Businesses
3,758
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Consumers are value conscious despite rising income, supporting budget supermarkets
  • The threat of e-commerce is relatively low in Ireland, allowing supermarkets to develop their own offerings
  • Increases in minimum pricing for the off-trade is expected to balance competition in favour of on-trade beverage purveyors
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a moderate level of capital intensity. Using depreciation as a proxy for capital and wages as a proxy for labour, the industry has a capital intensity ratio of 1:5.54. This suggests for every €1 spend on capital, €5.54 is spent on labour.In 2018, wages are estimated to account for 11.6% of industry revenue. Staff are required to replenish stock, serving customers and handling delicate produce. Meanwhile, depreciation is estimated to account for 2.1% of industry revenue in the current year. Depreciable assets include computer inventory systems, cash registers, and point-of-sale systems. Rising renovation and store refurbishment activity to entice consumers has also added to depreciation expenses...purchase to read more.

    Additional Insights for the Supermarkets Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Supermarkets Industry are

  • Proximity to key markets
  • Attractive product presentation
  • Ability to alter goods and services produced in favour of market conditions
  • IBISWorld analysts also discuss how external factors such as Gross disposable income of households and Population in the Supermarkets industry impact industry performance..

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    What's in this report

    What is the Supermarkets in Ireland Industry?

    Supermarkets sell a range of groceries and food, including fruit, vegetables, bread, canned goods, toiletries, dairy goods, alcohol, cleaning products and cigarettes. Off licences, greengrocers and symbol group and non-affiliated independent convenience stores are not included in this industry.

    Industry Products
  • Food - Meat, fish, poultry and delicatessen items
  • Food - Fruit and vegetables
  • Food - Dairy products
  • Food - Frozen food
  • Food - Other
  • Beverages - Alcohol
  • Beverages - Non-alcoholic
  • General merchandise
  • Industry Activities
  • Grocery retailing
  • Fruit and vegetable retailing
  • Bakery product retailing
  • Delicatessen product retailing
  • Beverage retailing
  • General merchandise retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Gross disposable income of households
  • Population
  • Demand from department stores
  • Perceived health

  • Current Performance
    Competitive landscapeExternal competitionStrategies for growthMarket structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
    Competitive landscapeRevenue growthMarket structure and profit
  • Table: Supermarkets Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Supermarkets Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Ireland

  • Key Selling Industries
  • Food, Beverage & Tobacco Wholesaling in Ireland
  • Meat Processing in Ireland
  • Prepared Meal Manufacturing in Ireland

  • Products & Services
  • Food - Meat, fish, poultry and delicatessen items
  • Food - Other
  • Beverages - Alcohol
  • General merchandise
  • Food - Fruit and vegetables
  • Beverages - Non-alcoholic
  • Food - Dairy products
  • Food - Frozen food
  • Chart: Supermarkets Industry Products and Services Segmentation

  • Demand Determinants
  • Household disposable income
  • Accessibility and convenience

  • Major Markets
  • First to fourth decile
  • Fifth to seventh decile
  • Eighth to tenth decile
  • Chart: Major Market Segmentation for the Supermarkets Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Supermarkets

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Supermarkets Industry

  • Industry Globalization
    Dunnes Stores, Tesco plc, Musgrave Group plc, Lidl Ireland GmbH, Aldi Stores Ltd,
  • Table: Dunnes Stores - financial performance
  • Table: Tesco plc - financial performance
  • Table: Musgrave Group plc - financial performance
  • Table: Lidl Ireland GmbH - financial performance
  • Table: Aldi Stores Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Supermarkets Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Supermarkets Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Off-Trade
  • The sale of alcohol to be consumed off the premises, such as from a supermarket or off-licence.
  • On-Trade
  • The sale of alcohol to be consumed on the premises.
  • Vegan Products
  • Products that do not use or contain any animal products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Supermarkets in Ireland market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Supermarkets in Ireland:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Supermarkets in Ireland market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Supermarkets in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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