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The Co-op and Waitrose buck trend for fewer promotions

The Grocer

The Co-op made a big promotional push last month, ramping up the number of featured space deals in stores by almost a fifth.

In total, the Co-op ran 917 featured space promotions in the four weeks to 23 April 2017 – up 18.9% on the previous four-week period and 18.8% on the same period last year [Promo Dynamic Retailers].

Ambient confectionery deals rose 56.3% year on year to tap into Easter demand, but the retailer also hiked the number of beer & lager deals (up 22.5%), wine (27.78%), meat (57.2%), cake & pastries (75%) and crisps, nuts & snacks (120%).

Waitrose also increased the number of featured space promotions in stores, up 3.87% year on year to 1342 over the four-week period. It focused on booze – offering more deals on wine (up 22.6%), beer & Lager (9.5%) and sparkling wine (44.4%). It also more than doubled the number of deals on oral care (up 141.7%) on last year.

However, the other major mults cut the number of deals compared with last year, with Asda slashing featured space promotions by £15.6%.

Despite ramping up deals on meat (up 37.5%) and ice cream (150.0%), the retailer significantly cut back deals on wine (-56.8%), fizzy drinks (-38.7%) and canned goods (-25%).

At the same time, all of the mults continued to cut average savings on deals. Tesco slashed the average amount of shoppers can save on promotional deals by the most – from 35.6% in 2016 to just 27% last month.

The Co-op offered the biggest average percentage saving of 33.5% over the four-week period, but that was down from 36.0% on last year.

“Consumers seem to be getting a very raw deal – fewer offers and less savings,” says Assosia director Kay Staniland. “With suppliers also tightening their purse strings, the shift away from featured space promotions could be purely down to cost.”

4 weeks to 23rd April 2017
Number of offers20749172152264224311342
Number last month25217712313284024471295
% change m-o-m-17.73%18.94%-6.96%-6.97%-0.65%3.63%
Number last year24567722228288023481292
% change on last year-15.55%18.78%-3.41%-8.26%3.53%3.87%
Average start price (£) per UNIT£2.81£2.69£3.04£3.39£3.27£4.23
Typical Average TOTAL £ saving£1.27£1.44£1.41£1.32£1.38£1.79
Typical Average TOTAL % saving27.0%33.5%30.1%26.3%27.0%30.3%
Average % saving last month29.8%33.5%32.0%26.7%29.6%30.5%
% savings change m-o-m-9.48%-0.15%-5.76%-1.66%-8.86%-0.64%
Average % saving last year28.3%36.0%33.1%29.1%35.6%31.6%
% savings change on last year-4.62%-7.06%-8.84%-9.91%-24.21%-4.08%
Current Brand:own-label ratio89:1173:2788:1279:2186:1487:13
Ratio 1 year ago90:1072:2888:1280:2085:1588:12
Average % saving (branded)28.0%36.1%30.6%26.7%27.1%30.0%
Average % saving (o/l)19.0%26.3%26.6%24.5%26.4%32.4%
AVERAGE STARTING PRICE LAST YEAR£2.88£2.58£2.82£3.15£2.73£4.21
Increase/Decrease in starting price £-£0.07£0.11£0.22£0.24£0.55£0.02
Increase/Decrease in starting price %-2.43%4.04%7.34%7.19%16.73%0.57%







Featured in The Grocer, 4 May 2017