Pricewatch January 12, 2018 - Chocolate bars

Analysis

The chocolate bar category remains reasonably price-elastic for retailers, meaning customers care less about the exact price of the Twix Xtra covered in our data than they do about other products in the same store. As our data shows, just 5% of retailers charge below the RRP of 79p, 10% stick to it, while more than half charge at least 10p higher.

It’s easy to understand why. Most adults are looking for a quick treat, and don’t pay much attention to price. Kids, stretching their pocket money as far it will go, are more sensitive; but even if a Twirl is too expensive, they’re still likely to spend their money on an alternative from the same store.

Profit checker

Price Price distribution %

Price checker

Average RRP SMALL HIGH STREET NEWSAGENT IN NORFOLK TOWN SMALL NEWSAGENT IN NEWCASTLE SUBURB C-STORE IN DORSET COASTAL TOWN C-STORE IN BLACKPOOL SUBURB SMALL SHOP IN COUNTY DURHAM VILLAGE C-STORE IN RESIDENTIAL AREA OF YORK
SNICKERS DUO 83.4G £89.00 £79.00 £85.00 £90.00 £77.00 £99.00 £95.00 £95.00
TWIRL 43G £55.00 £55.00 £55.00 £55.00 £55.00 - £55.00 £55.00
TWIX XTRA 75G £88.00 £79.00 £85.00 £90.00 £75.00 £99.00 £95.00 -
WISPA 36G £55.00 £55.00 £55.00 £55.00 - - £55.00 £55.00
MARS DUO 85G £88.00 £79.00 £85.00 £90.00 £82.00 £99.00 £95.00 £95.00
KITKAT 41.5G £62.00 £65.00 £59.00 £59.00 £60.00 £65.00 £65.00 £65.00
MILKYBAR 25G £60.00 £61.00 £59.00 £59.00 £59.00 £65.00 £65.00 £65.00
KINDER BUENO MILK & HAZELNUT 43G £79.00 £79.00 £79.00 - £80.00 £85.00 £85.00 £79.00
MILKY WAY MAGIC STARS 33G £67.00 £65.00 £65.00 £70.00 - £69.00 £67.00 £65.00
RIPPLE 33G £72.00 £69.00 £65.00 £75.00 £69.00 £75.00 £72.00 £65.00
MARS 51G £67.00 £61.00 £65.00 £70.00 £60.00 £75.00 £72.00 £65.00
SNICKERS 58G £67.00 £61.00 £65.00 £70.00 £60.00 £75.00 £72.00 £67.00
Narendra Singh Jadeja  Avatar

Narendra Singh Jadeja

Londis

Location: Waltham Forest, London

Size: 1,000sq ft

Type: neighbourhood

Top Tip
Keep it simple by charging the same price for similar products: I charge 66p and 95p for small and large Twix, Mars, Bounty, Snickers
I aim for a 25% margin in this category. I get this by rounding up the RRP to the nearest 5p or 9p: so if its RRP is 66p, I’ll charge 69p. Most customers don’t really notice the price, I think the only time they do is when they’re queuing at a petrol station, they look at the chocolate bars and see they’re all 20p pricier than normal. In a store like mine, it’s only children who make a purchasing decision based on the cheapest bar. I charge 95p for Twix Xtra – I’ve charged that price for years – which gives a 25% margin, more or less.
Kamal Sisodia Avatar

Kamal Sisodia

Belvoir News Loco

Location: Coalville, Leicestershire

Size: 950sq ft

Type: town centre

Top Tip
Multibuy promotions like two for £1 or two for £1.49 on duo bar work well in this category, and usually still give a 20% margin
We more or less stick to the RRP on chocolate bars, aiming for a 25% to 30% margin. Twirl is probably our best-selling single bar and Snickers is our best-selling Duo. We’ll go through a box of Twirl a week and three quarters of a box of Snickers Duo. We charge 85p for Twix Xtra and sell a little less of these than we sell of Snickers Duo. In general, our chocolate bars are a kind of mid-afternoon pick-me-up for workers, who’ll drop in and grab something on their way past, so pricemarking or promotions help push these impulse purchases.
Steve Haines Avatar

Steve Haines

The Broads

Location: Coltishall, Norwich

Size: 900sq ft

Type: village store

Top Tip
Don’t get too hung up on price – it’s often 18-30 year-old men grabbing a Mars or Snickers, and they don’t really care how much it costs
I generally aim for a margin of 25%. Pricemarked products will obviously drag that down a bit, although I don’t use them often, because I don’t think they’re really that effective in this category. We sell Twix Xtra at 90p, which gives us a 27.8% margin – although that is a price set by P&H so I might not be able to get it for much longer. We go through about a case a month, which is the nature of the type of store we are, in a rural setting with few workplaces around, relying on passing traffic.
Duncan McCutcheon  Avatar

Duncan McCutcheon

McCutcheon Newsagents

Location: Blaydon-on-Tyne

Size: 300sq ft

Type: residential

Top Tip
Make sure you’re priced competitively compared to nearby stores
We’re located next to a Spar and a Co-op which means we have to be competitive on price, so we aim to stock pricemarked products whenever they’re available from Booker. I’m not sure people are all that bothered about the price of chocolate bars themselves, but we have to remain price-competitive across the store. This means we make sure we’re generally cheaper than the Co-op, which obviously doesn’t do pricemarking, although I’m not sure how many bars they’re selling so I can’t comment on whether we’re winning as a result of the lower prices.

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