Supermarkets are decking the halls with promotional offers ahead of Christmas, but shoppers aren’t getting as many good deals as they were last year – especially in the booze aisles.

Most of the mults are offering more featured space promotions than last month, with the exception of Asda – which has reduced the number of promotions by 1.33% [Promodynamic Retailers 52 w/e 4 December 2016]. Morrisons has increased the number of featured space promotions in stores by the most, up 8.7% month on month to 2,421, while Sainsbury’s has the most deals at 3,131, up 4.1% compared with the previous four-week period.

On a year-on-year basis, only Morrisons, Sainsbury’s and Waitrose have increased the number of featured space promotions, and average % savings have fallen almost across the board, again with the exception of Asda, where they are up 3.29 points to 29.9%.

The amount of shoppers can save on featured space deals is falling because the mults are reducing the number of bogof and half-price deals and increasing the number of ‘save’ promotions – which have a lower average of saving of 30%.

BWS has suffered the biggest drop in terms of the number of deals on offer, accounting for just under 20% of total featured space promotions compared with 22% last year. Average % savings on alcohol have also fallen by three points to 23%. “Waitrose is the only retailer to buck this trend by increasing BWS deals, which now account for 38.1% of its total promotional activity,” says Assosia’s Kay Staniland. However, even Waitrose has cut average % savings on beer & Lager and spirits.

Meanwhile, Asda and Tesco are offering bigger savings on spirits, and Asda has increased savings on beer & lager. Sainsbury’s has cut average savings on all alcohol deals. Overall, wine has suffered the biggest cut in savings.

4 weeks to 4th December 2016
Number of offers23788582421313124381300
Number last month24108002228300823871216
% change m-o-m-1.33%7.25%8.66%4.09%2.14%6.91%
Number last year25408602380291126201220
% change on last year-6.38%-0.23%1.72%7.56%-6.95%6.56%
Average start price (£) per UNIT£3.65£4.33£4.55£4.56£4.30£6.42
Typical Average TOTAL £ saving£1.58£1.57£1.71£1.30£1.48£2.12
Typical Average TOTAL % saving30.9%34.0%33.5%27.4%31.2%31.6%
Average % saving last month31.8%34.9%33.5%27.8%31.8%30.5%
% savings change m-o-m-2.78%-2.69%-0.12%-1.61%-1.84%3.43%
Average % saving last year29.9%36.0%36.2%29.1%32.4%33.5%
% savings change on last year3.29%-5.49%-7.49%-6.03%-3.62%-5.75%
Current Brand:own-label ratio92:1873:2791:0979:2187:1386:14
Ratio 1 year ago90:1073:2789:1178:2286:1484:16
Average % saving (branded)31.6%36.3%34.2%28.5%32.2%31.9%
Average % saving (o/l)22.2%27.8%26.6%23.1%25.0%29.3%

Published in The Grocer, 14 December 2016.

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