Retailing in Ireland
Euromonitor International's Retailing in Ireland examines whether recent high growth rates can be sustained in an economic downturn. Growth has been boosted by richer consumers spending more and some companies’ decision to sell a wider range of non-food products. Rising sales have supported expansion into new markets, new store formats and moves into private label products. However, the economic downturn has set some of these strategies back, this analysis looks at whether grocery retailers will continue to enjoy similar rates of growth in the future.
Tables: 166 | Publication date: Jun 2009
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Product coverage
Non-store retailing; Store-based retailing
Executive summary
Convenient retail parks help to maintain positive market performance in 2008
One of the more positive trends to hit Ireland’s retailing market during the review period was the construction of more shopping malls, otherwise known as retail parks. These are essentially scaled down shopping centres, which revolve around the idea of locating a similar mix of retail outlets as would be found in an urban high street in a spacious lot, and are usually found in out-of-town locations. The popularity of these retail parks, which offer shoppers greater convenience, continued to support consumer spending and drive growth in retailing current value sales in Ireland in 2008.
Ethical consumerism trend continues to gain momentum in Ireland
The review period saw Irish consumers show an increased interest in the notion of ethical shopping. Globalisation, technological advances and the mass media now provide consumers with a variety of ways to keep themselves informed and voice their opinions on world issues like sustainable development, fair trade and environmental protection. Consequently, Irish people have become more knowledgeable about the impact of their purchasing decisions. This has led to the evolution of more discerning, morally-aware consumers who increasingly want products to serve more than just their primary function. Retailers and manufacturers have responded by placing a greater emphasis on ethical responsibility in terms of their environmental impact, sourcing policies and product assortments.
Smaller independents lose out to chains as Irish consumers seek low prices
Discounters, supermarkets and other price-competitive retailers benefited towards the end of the review period as Irish consumers began to feel the full effects of the global credit crunch. As large international operators rapidly expanded their chains, many smaller independent retailers were squeezed out of the market, unable to compete with the wide product assortments and low prices of their rivals. Smaller local independent retailers also had to contend with the fact that larger chains enjoy much more leverage with suppliers. This trend towards consolidation by bigger multinationals continued in 2008, as global and domestic economic woes hit household budgets hard and drove more consumers to opt for substantial price savings over traditional loyalty towards Irish retail brands.
Internet retailing thrives as broadband penetration improves across Ireland
Almost half of all Irish households had internet access in 2008. Having lagged behind other EU countries for many years, during the review period the Irish government finally began to make significant efforts to improve broadband penetration across the country. This was accompanied by an increase in the popularity of shopping online among Irish consumers, particularly urban dwellers leading busy lifestyles. For consumers, the main advantage of internet retailing is convenience; internet retailing sites allow consumers to ‘shop around’ and compare prices from the comfort of their own homes. They can avoid the high street crowds and have products delivered directly to their door. Towards the end of the review period, this trend towards shopping online received a further boost as the EU Commission moved to strengthen protective legislation for consumers who buy products over the internet. Easy access to credit for Irish consumers also promoted the development of internet retailing over 2003-2008.
Economic woes will shape market development over 2008-2013
Towards the end of 2008, Ireland began to feel the full impact of the global credit crunch. The country’s economic woes were significantly worsened by the crash of the domestic property market, concerns over the solvency of the main Irish banks, rising unemployment and a dramatic fall in tax revenues. Late in 2008, Ireland became the first Eurozone member to fall into recession, and tough economic conditions are likely to be the main factor shaping the development of the country’s retailing market over the forecast period. Constant value growth is expected to slow consistently towards 2013 as consumers cut discretionary spending and retailers respond by reducing prices. While larger multinational chains should be able to survive and even capitalise on the recession, many smaller independent retailers will be forced out of business. Store-based retailers that offer frequent promotions and competitive prices, such as discounters, supermarkets and hypermarkets chains, are expected to benefit from this situation, as are some non-store retailers, which can operate at a lower cost and offer greater convenience to consumers.
Table of contents
RETAILING IN IRELAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Convenient retail parks help to maintain positive market performance in 2008
Ethical consumerism trend continues to gain momentum in Ireland
Smaller independents lose out to chains as Irish consumers seek low prices
Internet retailing thrives as broadband penetration improves across Ireland
Economic woes will shape market development over 2008-2013
KEY TRENDS AND DEVELOPMENTS
Irish consumers increasingly base their shopping choices on ethical principles
Supermarkets and discounters chains capitalise on sharp economic downturn
Ireland embraces large shopping malls and scaled down retail parks
Online shopping trend continues to gain momentum in Ireland
Recession will slow retail market development significantly over 2008-2013
MARKET INDICATORS
Table 1 Employment in Retailing 2003-2008
MARKET DATA
Table 2 Sales in Retailing by Sector: Value 2003-2008
Table 3 Sales in Retailing by Sector: % Value Growth 2003-2008
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2005-2008
Table 5 Sales in Store-Based Retailing by Sector: Value 2003-2008
Table 6 Sales in Store-Based Retailing by Sector: % Value Growth 2003-2008
Table 7 Sales in Non-store Retailing by Sector: Value 2003-2008
Table 8 Sales in Non-store Retailing by Sector: % Value Growth 2003-2008
Table 9 Retailing Company Shares: % Value 2004-2008
Table 10 Grocery Retailers Company Shares: % Value 2004-2008
Table 11 Grocery Retailers Brand Shares: % Value 2005-2008
Table 12 Non-Grocery Retailers Company Shares: % Value 2004-2008
Table 13 Non-Grocery Retailers Brand Shares: % Value 2005-2008
Table 14 Non-store Retailing Company Shares: % Value 2004-2008
Table 15 Non-store Retailing Brand Shares: % Value 2005-2008
Table 16 Forecast Sales in Retailing by Sector: Value 2008-2013
Table 17 Forecast Sales in Retailing by Sector: % Value Growth 2008-2013
Table 18 Forecast Sales in Store-Based Retailing by Sector: Value 2008-2013
Table 19 Forecast Sales in Store-Based Retailing by Sector: % Value Growth 2008-2013
Table 20 Forecast Sales in Non-store Retailing by Sector: Value 2008-2013
Table 21 Forecast Sales in Non-store Retailing by Sector: % Value Growth 2008-2013
APPENDIX
Operating environment
Cash and Carry/Warehouse Clubs
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - IRELAND
ALDI IRELAND LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Aldi Ireland Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 3 Aldi Ireland Ltd: Competitive Position 2008
BOOTS RETAIL (IRELAND) LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Boots Retail Ireland Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
Summary 5 Boots Retail Ireland Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 6 Boots Retail Ireland Ltd: Competitive Position 2008
BROWN THOMAS GROUP, THE - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 7 The Brown Thomas Group: Key Facts
Summary 8 The Brown Thomas Group: Operational Indicators 2007-2008
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 9 The Brown Thomas Group: Competitive Position 2008
LIDL IRELAND GMBH - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Lidl Ireland GmbH: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 11 Lidl Ireland GmbH: Competitive Position 2008
MARKS & SPENCER (IRELAND) LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Marks and Spencer Ireland Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
Summary 13 Marks and Spencer Ireland Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 14 Marks and Spencer Ireland Ltd: Competitive Position 2008
MUSGRAVE LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Musgrave Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 16 Musgrave Ltd: Competitive Position 2008
PENNEYS - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Penney’s (Primark Stores Ltd): Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
Summary 18 Penney’s (Primark Stores Ltd): Private Label
COMPETITIVE POSITIONING
Summary 19 Penney’s (Primark Stores Ltd): Competitive Position 2008
SUPERQUINN LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 20 Superquinn Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 21 Superquinn Ltd: Competitive Position 2008
TESCO IRELAND LTD - RETAILING - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 22 Tesco Ireland Ltd: Key Facts
COMPANY BACKGROUND
PRIVATE LABEL
Summary 23 Tesco Ireland Ltd: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 24 Tesco Ireland Ltd: Competitive Position 2008
HYPERMARKETS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 22 Hypermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 23 Hypermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 24 Hypermarkets Company Shares by Value 2004-2008
Table 25 Hypermarkets Brand Shares by Value 2005-2008
Table 26 Hypermarkets Brand Shares by Outlets 2005-2008
Table 27 Hypermarkets Brand Shares by Selling Space 2005-2008
Table 28 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 29 Hypermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
SUPERMARKETS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 30 Supermarkets: Value Sales, Outlets and Selling Space 2003-2008
Table 31 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 32 Supermarkets Company Shares by Value 2004-2008
Table 33 Supermarkets Brand Shares by Value 2005-2008
Table 34 Supermarkets Brand Shares by Outlets 2005-2008
Table 35 Supermarkets Brand Shares by Selling Space 2005-2008
Table 36 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 37 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DISCOUNTERS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 38 Discounters: Value Sales, Outlets and Selling Space 2003-2008
Table 39 Discounters: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 40 Discounters Company Shares by Value 2004-2008
Table 41 Discounters Brand Shares by Value 2005-2008
Table 42 Discounters Brand Shares by Outlets 2005-2008
Table 43 Discounters Brand Shares by Selling Space 2005-2008
Table 44 Discounters Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 45 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CONVENIENCE STORES IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 46 Convenience Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 47 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 48 Convenience Stores Company Shares by Value 2004-2008
Table 49 Convenience Stores Brand Shares by Value 2005-2008
Table 50 Convenience Stores Brand Shares by Outlets 2005-2008
Table 51 Convenience Stores Brand Shares by Selling Space 2005-2008
Table 52 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 53 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FORECOURT RETAILERS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 54 Forecourt Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 55 Forecourt Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 56 Forecourt Retailers Company Shares by Value 2004-2008
Table 57 Forecourt Retailers Brand Shares by Value 2005-2008
Table 58 Forecourt Retailers Brand Shares by Outlets 2005-2008
Table 59 Forecourt Retailers Brand Shares by Selling Space 2005-2008
Table 60 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 61 Forecourt Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
MIXED RETAILERS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Mixed Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 63 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 64 Mixed Retailers Company Shares by Value 2004-2008
Table 65 Mixed Retailers Brand Shares by Value 2005-2008
Table 66 Mixed Retailers Brand Shares by Outlets 2005-2008
Table 67 Mixed Retailers Brand Shares by Selling Space 2005-2008
Table 68 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 69 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
HEALTH AND BEAUTY SPECIALIST RETAILERS IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 70 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 71 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 72 Health and Beauty Retailers Company Shares by Value 2004-2008
Table 73 Health and Beauty Retailers Brand Shares by Value 2005-2008
Table 74 Health and Beauty Retailers Brand Shares by Outlets 2005-2008
Table 75 Health and Beauty Retailers Brand Shares by Selling Space 2005-2008
Table 76 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 77 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
CLOTHING AND FOOTWEAR SPECIALIST RETAILERS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 78 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 79 Clothing and Footwear Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 80 Clothing and Footwear Retailers Company Shares by Value 2004-2008
Table 81 Clothing and Footwear Retailers Brand Shares by Value 2005-2008
Table 82 Clothing and Footwear Retailers Brand Shares by Outlets 2005-2008
Table 83 Clothing and Footwear Retailers Brand Shares by Selling Space 2005-2008
Table 84 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 85 Clothing and Footwear Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
FURNITURE AND FURNISHINGS STORES IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 86 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2003-2008
Table 87 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 88 Furniture and Furnishings Stores Company Shares by Value 2004-2008
Table 89 Furniture and Furnishings Stores Brand Shares by Value 2005-2008
Table 90 Furniture and Furnishings Stores Brand Shares by Outlets 2005-2008
Table 91 Furniture and Furnishings Stores Brand Shares by Selling Space 2005-2008
Table 92 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 93 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
DIY, HOME IMPROVEMENT AND GARDEN CENTRES IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 94 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space 2003-2008
Table 95 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 96 DIY, Home Improvement and Garden Centres Company Shares by Value 2004-2008
Table 97 DIY, Home Improvement and Garden Centres Brand Shares by Value 2005-2008
Table 98 DIY, Home Improvement and Garden Centres Brand Shares by Outlets 2005-2008
Table 99 DIY, Home Improvement and Garden Centres Brand Shares by Selling Space 2005-2008
Table 100 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 101 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
ELECTRONICS AND APPLIANCE SPECIALIST RETAILERS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 102 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 103 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 104 Electronics and Appliance Specialist Retailers Company Shares by Value 2004-2008
Table 105 Electronics and Appliance Specialist Retailers Brand Shares by Value 2005-2008
Table 106 Electronics and Appliance Specialist Retailers Brand Shares by Outlets 2005-2008
Table 107 Electronics and Appliance Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 108 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 109 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
LEISURE AND PERSONAL GOODS SPECIALIST RETAILERS IN IRELAND
HEADLINES
OVERVIEW
SECTOR DATA
Table 110 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space 2003-2008
Table 111 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2003-2008
Table 112 Leisure and Personal Goods Specialist Retailers Company Shares by Value 2004-2008
Table 113 Leisure and Personal Goods Specialist Retailers Brand Shares by Value 2005-2008
Table 114 Leisure and Personal Goods Specialist Retailers Brand Shares by Outlets 2005-2008
Table 115 Leisure and Personal Goods Specialist Retailers Brand Shares by Selling Space 2005-2008
Table 116 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2008-2013
Table 117 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2008-2013
VENDING IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 118 Vending: Value 2003-2008
Table 119 Vending: % Value Growth 2003-2008
Table 120 Vending Company Shares by Value 2004-2008
Table 121 Vending Brand Shares by Value 2005-2008
Table 122 Vending Forecasts: Value 2008-2013
Table 123 Vending Forecasts: % Value Growth 2008-2013
HOMESHOPPING IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 124 Homeshopping: Value 2003-2008
Table 125 Homeshopping: % Value Growth 2003-2008
Table 126 Homeshopping Company Shares by Value 2004-2008
Table 127 Homeshopping Brand Shares by Value 2005-2008
Table 128 Homeshopping Forecasts: Value 2008-2013
Table 129 Homeshopping Forecasts: % Value Growth 2008-2013
INTERNET RETAILING IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 130 Internet access by household 2005-2007
Table 131 Internet Retailing: Value 2003-2008
Table 132 Internet Retailing: % Value Growth 2003-2008
Table 133 Internet Retailing Company Shares by Value 2004-2008
Table 134 Internet Retailing Brand Shares by Value 2005-2008
Table 135 Internet Retailing Forecasts: Value 2008-2013
Table 136 Internet Retailing Forecasts: % Value Growth 2008-2013
DIRECT SELLING IN IRELAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 137 Direct Selling: Value 2003-2008
Table 138 Direct Selling: % Value Growth 2003-2008
Table 139 Direct Selling Company Shares by Value 2004-2008
Table 140 Direct Selling Brand Shares by Value 2005-2008
Table 141 Direct Selling Forecasts: Value 2008-2013
Table 142 Direct Selling Forecasts: % Value Growth 2008-2013