They touch most of our lives every week and account for a substantial chunk of our spending each year, yet we know very little about the financial performance of Ireland’s biggest grocery chains.

None of the major supermarket groups in Ireland publishes profit figures for their operations here, while Dunnes Stores and the German discounters Aldi and Lidl do not even provide information on turnover.

According to research group Kantar Worldpanel, the Irish grocery market is worth €9 billion. This figure is based on the buying habits of 3,000 families each week across the country.

The value of the Irish grocery market has effectively been flat for the past five years despite significant food price inflation during that time and the fact that the rise in population means more mouths to feed.

“Consumers have been looking at ways to cancel out the effects of price inflations,” noted Kantar’s commercial director in Ireland, David Berry.

Kantar estimates that Tesco is the biggest player, with a 27.6 per cent market share followed by Musgrave (when SuperValu and Superquinn are combined) at 24.9 per cent and Dunnes Stores at 21.5 per cent.

The German discounters have 14.4 per cent between them, a combined share built up from nothing over the past decade or so.

Each year, Tesco publishes sales figures for Ireland – its turnover was €3.15 billion for the year to February 2013 – but does not provide a profit figure. It is a similar story for its other operations in continental Europe and Asia.

The company has provided information about its economic contribution to the State. Its wage bill comes to about €350 million annually and it buys goods and services to the value of €2.7 billion each year.

Sales of Irish food to international branches of Tesco amount to about €700 million a year, making it a bigger export market for our local produce than France or Germany. It also invests €70 million annually on its stores and operations here.

Why not tell us what profit it makes in Ireland?

Dermot Breen, Tesco Ireland’s director of corporate affairs, said doing this would put the company at a “competitive disadvantage” given that none of its rivals here revealed their profits. He said the decision also reflected practices in other Tesco markets and the accounting policies of major multinational companies.

“We have very little information on the turnover of the vast majority of our competitors [in Ireland] and none at all on their profitability.”

A spokesman for Aldi Stores (Ireland) said the company “fully complies with all legal obligations with respect to its financial reporting”.

While Musgrave publishes a full annual report, this relates mostly to its wholesale activities. Sales figures for its SuperValu (€2.1 billion), Superquinn (€450 million) and other retail brands are published separately but no profit data is provided.

Family-owned Dunnes Stores reveals nothing and does not talk to the media about its finances.

It could be that retailers do not publish their profit figures because they do not want us to know the handsome margins they enjoy.

One senior industry executive, who is involved with a large Irish-owned supplier, said: “If there was clarity about the margins of retailers it would emerge that they are much higher than in the British market.”

The executive said Aldi and Lidl could charge lower prices partly because of the simplicity of their offering but it also reflected the slimmer margins they peg to products compared with their rivals here.

Suppliers often bear the brunt of a chain's desire to maximise profits. "Hello" money is banned but financial support in some shape is often sought by the multiples in return for shelf space. A code of practice is being proposed to counter this.
Tomorrow: Ruth O'Connor's week without supermarkets