The level of grocery products sold on deal in the UK is the highest in Europe – at 55.6% – but sales volumes are still flat.
A new report on European pricing and promotions by SymphonyIRI Group found highlighted the pressures facing grocery brands and retailers alike as costs rise and consumers keep a tight rein on their spending.
The report found more 72% of alcohol products sold on promotion – more than any other category. confectionery products were next at 67%, followed by non-alcoholic drinks (65%), personal care (64%), household (56%), chilled and fresh food (54%), frozen (51%), ambient food (50%) and pet care (43%).
Around 40% of own label sales were on deal too, but the proportion was rising slower than for brands, which accounted for three-quarters of trade-promoted volume.
The categories demonstrating the deepest price cuts were personal care, confectionery and household.
However, sales volumes were down in five out of nine categories, with household – down 3.5% - the hardest hit.
Over the last year, food prices in the UK rose by an average 5.1% compared to 3.3% in Germany, 0.4% in Greece and 1.3% in Spain, many driven by soaring raw material costs.
“Consumer feedback has prompted UK retailers to reduce their use of multi-buys by almost 5% and instead offer larger discounts on single items,” said Tim Eales, strategic insight director at SymphonyIRI.
”There are now less multi-buys and more price-led deals such as better than half price offers. Increasingly retailers are giving money off whole baskets and funding these promotions themselves when traditionally they would have expected the supplier to foot the bill.”
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