No frills shopping and discount prices at German owned supermarkets present a challenge to Irish retail outlets.
The arrival of discount supermarkets to the Irish market is a leading to a change in Irish consumer spending habits.
The Irish shopping basket is changing.
German supermarkets like Aldi and Lidl are experiencing an almost doubling of their market share in Ireland over the last 12 months. Many smaller grocers and corner shops are the most impacted by the arrival of the German discount stores.
Terence Cosgrave from Checkout magazine says that at the moment the strength of Irish brands and consumers desire to buy quality Irish food is going against the German retailers. While many people continue to do their main shopping at the more well-known supermarkets, they are now doing an occasional shop at either Aldi or Lidl or both.
The traditional big name supermarkets point out their commitment to Irish produce. However, they are beginning to feel the pressure from cheaper retailers.
Fergal Quinn of Superquinn says that retailers across Europe that offer customers something more than reduced prices have not lost much market share to the discount supermarkets.
It's a very competitive battle and I think it does a world of good for the marketplace.
An RTÉ News report broadcast on 28 February 2003. The reporter is Bernard McMullan.
