Retailers and suppliers are spending nearly three times as much on “slash-and-burn price discounting” as they are on value-added promotions, a survey has found.

According to the Institute of Promotional Marketing, £40bn of the UK’s £55bn total promo spend in 2013 went on some form of price discounting - £14bn on grocery discounts alone - while £14.4bn was spent on value-added promotions.

The figures showed that retailers and suppliers continued to be obsessed with price at the expense of more effective promotional tactics, said the IPM.

“Bargain hunting has become ingrained among Britons, with over half buying brands only when on price promotion,” said Paul Godwin, head of insight at the IPM.

“Yet there is a thriving industry of £14.4bn that continues to deliver value-added promotions, creatively engaging with shoppers to connect their needs with brand promises.

“The big question for brands and retailers has to be - why do we persist in spending on slash-and-burn price discounting when we could be adding value for everyone - brands, retailers and consumers.”