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Pricemarks and promotions are key for communicating competitive value to your shoppers. Priyanka Jethwa speaks to retailers and suppliers to find out how to make the most of them
Stand out from the competition
Raj Singh Londis Middleton Road, Banbury
Offering pricemarked packs and running promotions helps to differentiate our store from other retailers and gives people a reason to shop with us. Money is tight nowadays, so it’s a nice gesture to help shoppers out where we can.
Not everyone can afford some items when they aren’t on promotion or pricemarked, so when there is a promotion running on a product, we like to stockpile it to make sure it’s available for as long as possible. We tend to rotate promotions every four to five weeks when it comes to categories such as household products and fruit and veg.
Beat the multiples
Haresh Karia Best-one Harvil Road Post Office, Uxbridge
When shoppers see something is pricemarked, they know it is not being sold to them at an inflated price, but instead what the manufacturer has sold it for. This helps us compete against the multiples because consumers then know they won’t find it for a cheaper price elsewhere. With the rise of all these smaller Co-op and Tesco Express stores, we have to be especially savvy about it. We have to be even more competitive on beer and wine prices because of the illicit trade, so we always have it on promotion. Ninety per cent of our stock is either pricemarked or on promotion.
Win shoppers’ trust
Angela Sykes Denmore Premier Food & Wine Store, Rhyl
Pricemarks and promotions are so important to the running of the store, as long as they give us enough margins. Being an independent, shoppers can trust that you are giving them the best price when you have products on promotion. Every three weeks, we rotate our promotions according to our symbol group, so it maintains shopper interest.
It also helps create conversation with shoppers who will come and ask to see the new deals. We always keep toilet rolls on promotion because it saves shoppers going into town and carrying bulky items back home. We also keep bread and milk on promotion priced at £1.
Six suppliers explain why retailers should invest in pricemarking and promotions
With growing emphasis on price comparison and getting the best deal, shoppers have become savvier than ever when it comes to cost. Pricemarking provides a simple and visible way of demonstrating value to shoppers.
We know that 94% of energy drink purchases are on impulse, and consumers want easy access to chilled drinks on the go. Pricemarked drinks are therefore key, as they play a huge role when customers are making fast, impulse decisions.
Pricemarked parks are an effective way to encourage consumers to try new products, due to the perceived value they offer. Research shows that 43% of shoppers claim they would be more likely to try a new product if it was sold in a pricemarked pack.
There are certain times where retailers don’t have to align to a pricemark. For example, products that are offer a gift with purchase already have the added incentive to buy. This year, VK has released limited-edition mixed packs that contain a branded power bank.
They will drive £1 sales
Matt Collins Convenience sales director, KP Snacks
One-pound pricemarked ranges are growing at 24.1% year on year in the crisps and snacks category, while non-pricemarked formats are declining at 7% year on year. Pricemarked packs provide shoppers with value and offset any potentially negative price perceptions.
Having pricemarked products as one of the first things consumers see when coming into a store can be beneficial, as it catches the shopper’s attention instantly. Retailers can direct consumers to the shelves by creating theatre around the store with posters and signs.
Do pricemarked packs offer more value?
Stocking pricemarked packs will help you beat the average independent’s prices but is unlikely to make you more competitive than the multiples, according to our analysis.
Even a Co-op located in central London is priced more keenly than the pricemarked packs available nationally. There are some exceptions – the convenience staples of confectionery, soft drinks and snacks – but deep-cut prices in alcohol make the category difficult to beat on price for independents.
Retailers say that the rate of sale increases on lines when they change them to a pricemarked pack and given that the difference between independents and the UK average across 10 products is just 32p, it shows how powerful the right communication tool is.