Case Study
Face-to-Face Consumer Interviews For Havering Council
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 | ||||||
| Asda | Co-op | Morrisons | Sainsbury’s | Tesco | Waitrose | |
| Number of offers | 2074 | 917 | 2152 | 2642 | 2431 | 1342 |
| Number last month | 2521 | 771 | 2313 | 2840 | 2447 | 1295 |
| % change m-o-m | -17.73% | 18.94% | -6.96% | -6.97% | -0.65% | 3.63% |
| Number last year | 2456 | 772 | 2228 | 2880 | 2348 | 1292 |
| % 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 % saving | 27.0% | 33.5% | 30.1% | 26.3% | 27.0% | 30.3% |
| Average % saving last month | 29.8% | 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 year | 28.3% | 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 ratio | 89:11 | 73:27 | 88:12 | 79:21 | 86:14 | 87:13 |
| Ratio 1 year ago | 90:10 | 72:28 | 88:12 | 80:20 | 85:15 | 88:12 |
| 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