SUPERVALU BRINGING REAL COMPETITION TO THE IRISH GROCERY MARKET

28 February 2008

Statement from Donal Horgan, Managing Director, Musgrave Retail Partners Ireland re National Consumer Association survey

Musgrave welcomes the price survey issued earlier today by the National Consumer Agency which confirms that SuperValu’s pricing is more competitive than Dunne’s Tesco and SuperQuinn across 67 common items to the stores.

The SuperValu price promise, ensures low pricing on everyday items that consumers buy most frequently, combined with excellent promotional offers on a significant number of other products across our stores. The survey also demonstrates the consistency of SuperValu’s price competitiveness as the findings relating to SuperValu are similar to those included in the NCA’s pilot survey last year.

The survey confirms that SuperValu’s network of independent retail partners across the Country who own and operate their own stores are bringing true competition to the Irish grocery market and are providing consumers with a real alternative choice to the multiples.

SuperValu, together with its retail partners, has developed its offer to consumers based on a value for money offering, an excellent range as highlighted by its superior fresh food offering and people expertise demonstrated by its unrivaled level of customer service. Community active retailing is also at the heart of the SuperValu offer, driven by local retailers who are passionate about supporting and investing in their communities and developing their businesses to meet the needs of local consumers. SuperValu is driving competition in the market, delivering real value to Irish consumers and is achieving above market share growth.

The survey does point out some price differentials between SuperValu and the discount operators on own brand products. SuperValu has developed its own brand range to provide a value for money offer through ‘Nice Price’ as well as a standard own brand range. Consumers can find exceptional value across all SuperValu stores by purchasing from within this own brand range. SuperValu ‘Nice Price’ is its cheapest-on-display product, while the SuperValu standard own label range provides the same quality, as its equivalent branded product, but with a significant price discount.

The NCA survey analyses price alone and in this regard, Supervalu has been recognised as bringing real competition to the market. However, it is important to note that other factors such as range, quality and service also influence shoppers’ decisions on where to shop. SuperValu, as evidenced by the the NCA work to date, and its above market share growth, is offering excellent value for money and is clearly meeting shoppers expectations, with its combined focus on price, quality, range and service.

The survey also confirms that Centra is the most price competitive convenience retail outlet. Centra has recently launched a ‘Rite Price’ range which will provide further value to consumers.

Ends

For further information, please contact
Edelman
Joe Carmody / Piaras Kelly
Tel: 01 678 9333