Further money off highlights
30 August 2019
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We will cover Kantar and the wider market developments next week (also look out for our free report that will come to you as a subscriber for the service covering Kantar and context behind the figures).
However you will remember last week we looked at the money off developments in the market and the sales driving elements that retailers are pushing to boost sales in a difficult market.
Brexit, weather, confidence weakening and the like means that sales are needed to try and get things moving, especially ahead of Christmas and the golden quarter incoming.
Difficult to balance of course but short term sales drivers just add long term complexity, especially when it comes to comparative figures next year.....
Notable last Sunday that Lidl were pushing £5 off a £25 spend in the press, they generally push the Daily Mail / Express press in stores and there must be alignment with target customers and also their Wine list, if they have a Wine recommendation then trade picks up almost immediately.
But a £5 off voucher aids paper sales but is also notably aggressive (IE lower target spend to get a voucher) thus it becomes a valuable incentive. A reaction to the fuel deals presumably which in themselves are effective as it takes trade from discount (no fuel stations).
But it appears times are tough for the high street, perhaps more than we appreciate.
WH Smith, free £5 voucher with a £20 spend on cards, books and stationery. A notable concern for WHS given that its back to school time and they should have been shifting abundant amounts of stationery, but they haven't been doing so, clearly.
Price points are always an issue in WHS, prices are too high and poor value versus the marketplace. Especially when you consider that supermarkets are firmly in the space alongside the likes of B&M - a growing threat to many retailers with an aggressive expansion plan.
Seasonal events are huge for retailers like B&M as they can offer value, pick up additional sales (customers in B&M must go for 1/2 things then end up spending a fortune, we always do) and back to school can also enable them to showcase real value versus their mainstream rivals, especially ones like WH Smith who have coached customers out of their stores for a number of years.
Price isn't always everything but combined with everything else, it's a huge piece of the puzzle here.
Plus for any readers growing up in the 90's / 'Noughties'.......
You'll remember these retro pencil cases, seen in WH Smith but also B&M last week. B&M are always on trend in Toys and the seasonal events are no exception. Competition is coming from every angle.
No retailer or market is sacred anymore.
From the Grocery Insight newsletter archive, first sent to subscribers on 30 August 2019. Steve now writes at read.groceryinsight.com. See also the blog archive and briefings.