The overall number of promotions on featured space once again declined in the four weeks to 7 May 2017, but hopefully, shoppers finally saw savings start to creep up once more.

Average savings increased month on month at Tesco (7.5%), Waitrose (4.5%), Sainsbury’s (4%) and Morrisons (2.6%) [Promo Dynamic Retailers].

Assosia director Kay Staniland says this is largely the result of a 21% increase in the number of half-price offers run by the mults, “Average price cut deals offer around 30% savings on base price, so increasing half-price deals immediately shows a bigger commitment to keeping the basket spend lower,” she says.

The rise in half-price offers was most likely due to them offering “a simple message” that “grabs consumers’ attention”, she adds, whereas multi-buys “can be hard to calculate”.

Tesco showed the largest increase in savings thanks to a heavy focus on single price point savings, with 83% of offers using saving and half-price mechanics. At the same time, however, the retailer recorded the largest drop in promotional activity on a month on month basis, down 11.3%. It also saw the biggest year-on-year drop in savings, down 18.5%.

In terms of the most heavily promoted categories, Tesco and the Co-op were the only retailers to feature fruit & veg in their top 10 in the four weeks to 7 May 2017. Tesco offered savings of 30% and 31% for fruit and veg on average, which Staniland says offer “a good incentive for consumers to take advantage of some healthier options”.

On a year-on-year basis, however, the total number of Tesco fruit promotions was down 6.3%, while veg deals were flat. The drop in fruit was likely due to the retailers’ free fruit for kids, says Staniland. “Tesco is clearly working on more positive consumer messages than simply pushing a large variety of promotions.”

Featured Space Analysis captured by Assosia Ltd

Number of offers20588682134255722391320
Number last month21548722163270725241332
% change m-o-m-4.46%-0.46%-1.34%-5.54%-11.29%-0.90%
Number last year24558002228298623481305
% change on last year-16.17%8.50%-4.22%-14.37%-4.64%1.15%
Average start price (£) per UNIT£2.62£2.70£3.03£3.47£3.25£4.19
Typical Average TOTAL £ saving£1.27£1.45£1.45£1.37£1.45£1.86
Typical Average TOTAL % saving26.8%33.8%31.0%27.1%29.0%31.2%
Average % saving last month28.0%33.8%30.3%26.1%27.0%29.8%
% savings change m-o-m-4.26%-0.09%2.26%3.97%7.45%4.54%
Average % saving last year28.3%35.6%33.0%28.6%35.6%31.2%
% savings change on last year-5.23%-5.07%-6.16%-5.43%-18.48%0.01%
Current Brand:own-label ratio89:1172:2888:1278:2285:1587:13
Ratio 1 year ago90:1070:3088:1281:1985:1588:12
Average % saving (branded)27.7%36.3%31.5%27.8%29.5%31.0%
Average % saving (o/l)19.1%27.1%27.4%24.5%26.3%32.5%
AVERAGE STARTING PRICE LAST YEAR£2.88£2.69£2.82£3.37£2.73£4.27
Increase/Decrease in starting price £-£0.26£0.01£0.21£0.10£0.53-£0.07
Increase/Decrease in starting price %-9.82%0.55%6.85%2.99%16.21%-1.71%


Published in The Grocer, 02 June 2017

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