Pricewatch: 18 May, 2018 - ice lollies and ice creams

Analysis

After a long winter, all it takes is a few sunny days to drive adults and children alike into stores, on the hunt for a frozen treat. 

Ice cream and lollies are a competitive impulse category, with a large majority of the retailers we surveyed sticking to RRP. Across the UK, 41.4% of our sample chose to price Calippo Orange at Booker’s RRP of £1.10. 

The next-biggest trend was to undercut RRP, with 24.7% opting to price the product at £1. Meanwhile, a few retailers – 9.6% – chose to price at £1.20. 

Retailers we spoke to warned that knowing your local market is key. 

Profit checker

PRICE Price distribution %

Price checker

AVERAGE UK SELLING PRICE
1.9045700211119
BOOKER RRP
1.9
C STORE IN NORFOLK SEASIDE TOWN
2
OFF LICENCE IN SUBURB OF DERBY
1.85
SMALL C STORE IN HIGH STREET OF LARGE SOUTH WALES TOWN
1.9
SHOP IN CORNISH HOLIDAY PARK
1.95
LOCAL STORE IN DORSET VILLAGE
1.9
POST OFFICE AND NEWSAGENT IN NORTH YORKSHIRE VILLAGE
2
LARGE SHOP IN RESIDENTIAL STREET OF SOUTH WEST LONDON
1.9
MAGNUM WHITE CHOCOLATE 110ML £1.91 £1.90 £2.00 £1.87 £1.90 £1.95 £1.90 £2.00 £1.90
MAGNUM DOUBLE CHOCOLATE 88ML £1.96 £2.00 £2.00 - £2.00 £1.95 £2.00 £2.00 -
MAGNUM DOUBLE RASPBERRY 88ML £1.94 £2.00 £2.00 £2.00 £2.00 - £1.90 £2.00 £1.90
CALIPPO ORANGE £1.11 £1.10 £1.20 £1.10 £1.10 £0.95 £1.10 £1.00 £1.10
TWISTER £1.12 £1.10 £1.35 £1.10 £1.10 £1.20 £1.00 £1.20 £1.00
FEAST 90ML £1.08 £1.00 £1.20 £1.00 £1.00 £1.20 £1.00 £1.10 £1.00
MAGNUM MINT 100ML THREE-PACK £1.92 £1.90 £2.00 £1.90 £1.90 £1.95 £1.90 £2.00 -
SOLERO EXOTIC 90ML £1.41 £1.40 £1.60 £1.40 £1.40 £1.35 £1.40 £1.35 £1.40
CORNETTO STRAWBERRY 120ML £1.40 £1.40 £2.90 - £1.40 £1.45 £1.40 £1.50 £1.31
BOBBYS LOLLY £0.30 £0.30 - - - - - - £0.30
CLASSIC WHITE ICE CREAM £0.75 £0.75 - £0.75 - - - - -
Data supplied by
Data supplied by

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How we drive our profit

Anish Panchmatia Avatar

Anish Panchmatia

Spar Wylde Green

Location: Sutton Coldfield

Size: 3,000sq ft

Type: main road

Top Tip
Focus on local suppliers because they can help you offer a point of difference
We get our ice cream from a variety of sources, including local suppliers and wholesalers such as Booker and Blakemore. We tend to aim for margins of 30%. Although we have more well-known brands, such as Magnum, we always focus on promoting our ice cream parlour, which has more specialist brands, such as Kelly’s or Gelato Gold. We’re the only shop in the area with an ice cream parlour and this gives us a point of difference. Summer is really good because our sales can grow from £400 per week to £600 per week because of the parlour.
Keith Tomes Avatar

Keith Tomes

Costcutter & The Food Shop

Location: Swanage, Dorset

Size: 1,000sq ft

Type: high street

Top Tip
Try sticking to the RRP if you are not in a tourist hotspot to stay competitive
We are in Swanage, a popular seaside resort in Dorset, but we are about a mile away from the seafront. There, retailers can charge much higher prices for ice creams because shoppers don’t tend to consider price so much, but here we have to be competitive. I stick to the RRP across my ice cream and ice lolly products. Customers for this category are split about 50/50 between children and adults, and we are close to a school, so in the summer months we often get children picking an ice cream up on the way home from school.
Kishore Chandarana Avatar

Kishore Chandarana

Tara's Londis

Location: High Wycombe

Size: 600sq ft

Type: parade

Top Tip
If a product isn’t selling as well as you’d hoped, price it below RRP to shift the stock
We sell Calippos at the £1.10 RRP, but we don’t go with the RRP across all our ice cream products. We mix and match pricing to keep as many customers as possible happy. For instance, we sell low-margin, value products which generate a high rate of sale – such as value ice lollies which we sell on a 'four for 50p' deal – and then also offer more premium ice cream products with a higher price and margin. If there are pricemarked products available from our suppliers, we always opt to stock those as customers respond well to pricemarked products.
Harj Dhasee Avatar

Harj Dhasee

Nisa Village Stores

Location: Mickleton, Gloucester

Size: 1,600sq ft

Type: high street

Top Tip
Impulse is the key – place the ice creams near the front of the store
I get my ice cream from Nisa and normally add 10p on top of RRP across the range, which gives me average margins of 20%. I don’t get much passing trade in the area and I rely on the local residents to purchase the products. There isn’t much competition nearby, which helps, because I’m a destination for ice cream in the area. We’re near the countryside and a lot of residents go on walks. We normally see a 30% uplift during summer because they want something refreshing either during or after their walk, and they’ll come into the shop once they see it.

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