Pricewatch January 19, 2018: Jelly Tots

Analysis

Sugar confectionery is a category suited to impulse purchasing, allowing retailers to reap relatively high margins. Our data show 85% charge above the 51p RRP for a 42g bag of Rowntree Jellytots, while more than 23% add 4p to the RRP, and 14.3% go as a high as an additional 10p.

 

The retailers we spoke to earn average margins of 30%-35% and keep an active eye on pricing at neighbouring stores, then set prices to compete. Adults, they say, take little notice of prices, while keeping a good range at the till means children can find options to suit their budgets.

Profit checker

Price Price distribution %

Price checker

Average RRP LARGE C-STORE IN TEESSIDE RESIDENTIAL AREA HIGH STREET C-STORE IN EAST SUSSEX VILLAGE HIGH STREET NEWSAGENT IN HAMPSHIRE COUNTRY TOWN CENTRAL ABERDEEN HIGH STREET NEWSAGENT SMALL SHOP IN SOUTH WEST LONDON SUBURB LOCAL STORE IN SOUTH WALES VILLAGE
ROWNTREE FRUIT PASTILLES 52G £0.60 £0.51 £0.55 £0.60 £0.60 £0.69 - -
VIMTO FIZZY RIPPA ROLL 36G £0.49 £0.49 - £0.50 £0.50 - £0.50 £0.50
ROWNTREE JELLYTOTS 42G £0.58 £0.51 £0.55 £0.60 £0.65 £0.65 £0.55 £0.69
SKITTLES 55G £0.59 £0.49 - £0.60 £0.60 £0.69 £0.60 £0.69
BUTTERKIST CRUNCHY TOFFEE POPCORN 85G £1.00 £1.00 - £1.00 - £1.00 - £1.00
FRUITTELLA STRAWBERRY 41G £0.53 £0.49 £0.50 £0.50 - - £0.55 £0.59
STARBURST FRUIT CHEWS 45G £0.58 £0.49 £0.55 £0.60 £0.60 £0.65 £0.55 £0.59
MAYNARDS WINE GUMS 52G £0.50 £0.50 £0.50 - - - - £0.50
MR TOM PEANUT IN TOFFEE 40G £0.49 £0.40 £0.49 £0.50 £0.45 - - £0.59
MAYNARDS WINE GUMS ROLL 52G £0.62 £0.69 - £0.65 - £0.69 £0.60 -
BASSETTS CHERRY DROPS 45G £0.62 £0.56 £0.70 £0.55 £0.65 - - £0.69
CHEWITS STRAWBERRY 30G £0.44 £0.39 £0.45 £0.45 £0.40 £0.79 £0.50 £0.50

How we drive our profit

Samantha Coldbeck Avatar

Samantha Coldbeck

Wharfedale Premier

Location: Hull

Size: 1,600sq ft

Type: city outskirts

Top Tip
Shoppers like variety so stock a range of pricemarked and non-pricemarked sweets to appeal to them
With sweets, we mainly get a mix of schoolchildren looking for them, though adults buy them as well because they see them as a nostalgic treat. I charge 4p above the 51p RRP for Rowntree’s Jellytots and customers don’t really mind – they are definitely an important product because we sell a case of 24 a week. Margins from Booker are getting tighter, so I need to charge slightly higher to make a decent profit. We also have a petrol station nearby which charges way above RRP, so people choose to come here because we set prices very competitively.
Tony Cristofaro Avatar

Tony Cristofaro

Spar Landmark Place

Location: Cardiff

Size: 1,900sq ft

Type: city centre

Top Tip
Listen to your wholesaler – they know the market and will offer the best tips on merchandising and promotion
I buy my products from Blakemore and we set our prices to get higher margins of 35% because the majority of sweets are bought on impulse. A lot of shoppers are office workers and students, so they’ll come in the mornings and at lunchtime, and aren’t too bothered about price. The 100g £1 sharing bags from Haribo, Starburst and Rowntree are very popular because we have a cinema across the road and shoppers will come in to get sharing snacks for a film. I ensure the store remains competitive by always double-checking the prices from nearby competition and matching them.
Paul Patel Avatar

Paul Patel

WH Smith Local

Location: Southampton

Size: 1,500sq ft

Type: residential area

Top Tip
Include products which your competition doesn’t sell in multibuy promotions so you stand out and customers remember you
There’s a Tesco nearby and we’ll never be able to compete with them on price. With sweets, we either go for higher margins of 30% by charging 69p a bag or a two-for-£1 promotion which works quite well. We place sweets by the till to try and encourage customers, who are normally adults, to increase their basket spend and make up for the lower margins on promotions. We include products such as Divine chocolate bars, which Tesco doesn’t offer, in the promotion to create a point of difference and draw customers away from the bigger competition.
Chris Herring Avatar

Chris Herring

Londis Shiphay Post Office

Location: Torquay

Size: 2,800sq ft

Type: neighbourhood

Top Tip
Only stock two variants of a certain product – that way, customers aren’t intimidated by a huge number of products
We add an extra 10p to the RRP of single-serve sweets because we don’t have much demand for them. The profit margins are an average of 30% – we need to go for high margins, but avoid pricing too high and putting customers off. This helps us compete with the nearby Co-op and Asda. What gives us a competitive edge against the multiples is larger £1 sharing bags. We make 20% margin on each sale. Shoppers are looking for more value and the £1 fixed price reinforces that idea. The idea of a single £1 transaction is also more convenient to customers.

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