Retail Trends 2017
Retail is Ireland’s largest industry and largest private sector employer, with a presence in every city, town and village – right across the country.
Did you know?
- There are 37,400 retail and wholesale businesses operating in Ireland.
- The Irish retail sector employs almost 285,000 people.
- Retail is the biggest contributor to the Irish exchequer. Over the past three years, tax revenue from retail has grown to over €7bn.
- The Irish retail industry is primarily made up of small, family owned, indigenous companies.
- Across the regions, retail accounts for 12% to 15.5% of employment.
Seasonally adjusted, the volume of retail sales decreased by 4.8% in June 2017, with an annual increase of 4.1%, according to the Central Statistics Office (CSO).
The sectors with the largest monthly volume decreases were Hardware, Paints & Glass (-5.9%), Motor Trades (-3.9%) and Other Retail Sales (-3.2%).
The sectors with the largest month on month volume increases were Books, Newspapers and Stationery (3.5%), Non-Specialised Stores, excluding Department Stores (2.5%) and Electrical Goods (2.1%).
SuperValu Remains Top Supermarket in Ireland: Kantar Worldpanel
Irish retailer SuperValu is ranked as the top supermarket in the country, according to the latest Kantar Worldpanel report.
The statistics for the 12 weeks ending July 16, 2017 also show that the Irish market is growing, despite worsening price deflation.
SuperValu has retained its position as the country’s leading supermarket for the eighth consecutive period, although its market share dipped to 22.1%.
Tesco sits in second-place position with 21.9% market share and a 2% increase in value sales, followed by Dunnes Stores.
Meanwhile, the discount retailers experienced strong growth during this period, with sales at Lidl and Aldi growing by 3.8% and 3.7%, respectively.
The value of the grocery sector in Ireland was €2.34 billion during this period, which represents 2% growth, when compared to 2016.
Supermarket Trends in 2017
Some of the key trends affecting the supermarket industry this year include technology, food safety, and sustainability.
According to Euromonitor, the top consumer trends for 2017 are as follows:
- The Longevity economy
In 2017, nearly 25% of the world’s population will be aged 50 plus. Increasingly referred to as the “Longevity economy”, this group of consumers will demand more from retailers.
- Children, Convenience, and Consumption
There’s an increasing demand for convenience from consumers who are struggling with work/life balance.
Time-poor parents are reaching for paid-for convenience and as a result, children are being introduced to consumption at an earlier stage, according to the Bord Bia Consumer lifestyle trends report.
Other factors contributing to this trend include more time spent online and adult children residing at home, often into their 20’s and beyond.
- Quick Buys
As technology and online shopping continues to evolve, consumers expect fast service and immediate access and communication with brands.
- The Pursuit of Authenticity
Authenticity will be a key driver in 2017, adopted by everyone from supermarkets to celebrities.
- Wellness as a status symbol
There has been increased emphasis on health and wellness over the past year. According to the Bord Bia Consumer Life Style trends report about Health and Wellbeing, “achieving balance is increasingly top of consumers’ agendas.”
General Retail Trends 2017
Cost pressures, rising inflation and slowing wage growth are affecting consumer confidence and dampening demand in the Irish retail sector in 2017.
Retailers are also seeking to invest in digital technology that will increase efficiency and add value for their customers.
Prepare for the future of shopping
According to Vend’s 2017 Retail Trends and Predictions Report, “retailers who promote product quality, transparency, and sustainability will flourish.”
The report states that there are a number of contributing factors in this trend including a worldwide shift toward sustainability, consumer desire to be more ethically conscious in purchase decisions, and a keen interest in supporting brands with a “strong sense of identity.”
Over half of consumers are more likely to shop at a retailer in store or online that recognises them by name, according to an Accenture Interactive study.
In 2017, retailers around the globe are pushing their omnichannel strategies further than ever before in the pursuit of truly seamless shopping experiences.
E-commerce is continuing to grow and this growth is affecting traditional retailers.
Retailers who haven’t already adopted mobile payments will make efforts to do so.
The retail store experience will focus on transaction, fulfilment and convenience.
Voice-user interfaces (VUI)
Voice user interfaces (VUI) and connected devices in the home and car will have a profound impact on how we shop.
Artificial Intelligence (AI)
Robotic technology will play a more visible role in retail as AI becomes more powerful.
Agile at scale
More retailers will implement agile across their business as scale as they try to respond to structural change in the marketplace.