shop shelf offers marketing value supermarket

Shoppers looking to bag a summer bargain may have been disappointed last month - with the mults cooling down promotions despite the warmer weather.

Most of the big mults cut back on featured space promotions month on month, with only Asda (+0.3%) and Waitrose (+0.8%) increasing the number of deals on offer [Assosia 4 w/e 4 September 2016].

Average % savings were also down across the board, with only Asda (+0.8%) and Waitrose (+3.3%) offering better savings than the previous month.

“Sainsbury’s had the biggest decrease in number of offers available month on month at 4.3%, with a savings decrease of 3%,” says Assosia director Kay Staniland.

On a year-on-year basis, retailers on the whole offered more deals, although featured space promotions in Tesco were down 6.6% year on year. Asda was the only supermarket to offer higher average % savings year on year, with Morrisons recording the biggest % saving drop of 12.4%.

BWS was the most promoted category last month, but both the number of alcohol deals and average % savings were down year on year.

Wine saw the biggest cut in average % savings, down 7.1 percentage points year on year, while spirits saw the biggest reduction in terms of the number of featured space promotions, down 0.5 points.

Meanwhile, the major retailers continue to cut back on bogof and x-for-y deals in line with their promises around simpler pricing strategies.

“Almost 80% of total promotional activity in featured space is based around the price cut mechanics, with multibuy continuing to go out of favour,” says Staniland. “Asda is the only retailer to continue to have just over a third of its products on x-for-y, differentiating itself from the other key players at a time when they are actively reducing them.”