Pricewatch: 2 November, 2018 – Single chocolate bars
Find out how you store compares on the price of single chocolate bars
Single chocolate bars are the heart of a convenience store’s offer, but cheap multipacks in supermarkets are putting on the pressure.
This is evident in the table (right), which shows that independents are pricing standard singles, such as Cadbury Twirl, Wispa and Kinder Bueno below RRP to stay competitive.
Extra margin is available on bigger lines, such as Mars Duo and Twix Xtra, which can be priced above RRP as they offer better value to shoppers.
There are also products such as Kinder Joy that offers children’s toys for extra value. Shops such as the c-store in central Sussex in the table are able to charge nearly twice the RRP.
If you must price keenly, consider merchandising chocolate singles in baskets next to your food to go, with a lunch meal deal to increase spend. It’s essential to offer shoppers choice, though, so stocking healthy snacks such as fruit next to chocolate bars is a great way to show you have the full offer available.
|PRODUCT||AVERAGE||BOOKER RRP||SMALL ESSEX VILLAGE HIGH STREET STORE||POST OFFICE AND NEWAGENT IN READING SUBURB||LOCAL C-STORE AND POST OFFICE IN NORTH EAST COASTAL TOWN||C-STORE AND NEWSAGENT IN CENTRE OF SUSSEX COASTAL RESORT||LARGE C-STORE IN CARDIFF SUBURB||C-STORE IN WIRRAL VILLAGE HIGH STREET|
|FERRERO KINDER JOY CHRISTMAS 20G||£1.07||£1.09||£0.99||–||£2.08||£2.08||£1.00||£0.99|
|KITKAT CHUNKY SALTED CARAMEL FUDGE 42G||£0.70||£0.67||£0.74||£0.65||£0.69||£0.69||£0.65||£0.67|
|MARS SNICKERS DUO 83.4GM||£0.90||£0.79||£0.95||£0.85||£0.95||£0.89||£0.90||£0.89|
|CADBURY TWIRL 43G||£0.55||£0.70||£0.55||£0.55||£0.55||£0.55||£0.55||£0.55|
|MARS BAR DUO 85G||£0.90||£0.79||£0.95||£0.85||£0.95||£0.89||£0.90||£0.89|
|MARS TWIX XTRA 75G||£0.90||£0.79||£0.95||£0.85||£0.89||£0.89||£0.80||£0.89|
|CADBURY WISPA 36G||£0.55||£0.70||£0.55||£0.55||£0.55||£0.55||£0.55||£0.55|
|KIT KAT 41.5G||£0.64||£0.65||£0.74||£0.69||£0.59||£0.69||£0.69||£0.80|
|NESTLE MILKYBAR MEDIUM 25G||£0.61||£0.61||£0.59||£0.55||£0.60||£0.59||£0.55||£0.59|
|WISPA GOLD 48G||£0.55||£0.70||£0.55||£0.55||£0.55||£0.55||£0.55||£0.55|
|MALTESERS BUTTONS TREAT BAG 68G||£1.00||£1.00||£1.00||£1.00||£1.00||£1.00||–||£1.00|
|KINDER BUENO WHITE BAR||£0.60||£0.79||–||£0.60||£0.60||£0.60||£0.60||£0.60|
EDFM is a specialist in helping leading suppliers to the UK’s independent convenience channel get value, insights and business benefits from EPoS data. To find out how they could help you call 07976 295094
Pasture Lane Stores
Location: Loughborough, Leicestershire
Size: 1,000sq ft
Type: village Top Tip Stock pricemarked bars to help communicate value to your shoppers We stick to the RRP in the category, but also buy a lot of pricemarked stock from wholesalers. Around 80% of Cadbury lines at wholesale come pricemarked ‒ it’s better value for money and it sells far quicker than those that are not pricemarked. Single bars of chocolate are incremental to the category, with Cadbury Dairy Milk single bars the bestseller, but over the past year, I have noticed a gradual shift toward more shoppers picking up larger sharing blocks because most of them come in £1 pricemarked packs.
Location: Pembroke, Pembrokeshire
Size: 1,300sq ft
Type: village Top Tip Set your own prices because RRP doesn’t offer enough profit We set the price of single chocolate bars above the RRP in this category because the RRP set by manufacturers doesn’t produce enough gross profit to cover other costs. I find that people are happy to pay a little more; it doesn’t seem to bother them. We also stock a few lines that are pricemarked. Bestsellers in the category include the Euro Shopper range because of its price, which makes it the cheapest line we offer. We also set promotions in the category comprising two or three bars for £1, depending on the brand.
Location: Purley, London
Size: 900sq ft
Type: town Top Tip Keep your display clean and tidy, and make sure you have good availability of products In this category, we set the prices for single chocolate bars slightly above the RRP. This is to cover our increasing overheads, from the rise in the national living wage to business rates and rent costs. Usually, the RRP in this category doesn’t cover these costs and, as a result, for the past four years I have been setting prices slightly higher – I don’t think shoppers mind paying a few pence extra in this category. To make the most of the category, I recommend stocking bestsellers such as Cadbury, Mars and Nestlé products, as these are what shoppers want.
Location: Market Harborough, Leicestershire
Size: 2,000sq ft
Type: village Top Tip Know your local market and competition, and focus on bestsellers When it comes to the single chocolate bar category, we normally stock pricemarked packs. If we do price them ourselves, we go above RRP and sell them all at the same price. To get the best prices, we shop at Booker Wholesale because they always have deals such as two-for-£1 pricemarked packs, or bars at 55p to 60p pricemarked. I would say that the category is not great for margins, but overcoming this is all about pricing according to what you think your shoppers are willing to pay.
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