Pricewatch: 20 August, 2018 – Chocolate
Find out how your store compares on chocolate pricing
Chocolate bars are a convenience store staple and, as this week’s analysis shows, it is a category in which retailers can make strong returns whether they stick to or exceed RRP. Tracking the price of Ferrero Kinder Bueno White 39g exemplifies this.
The most popular pricing strategy was to go with the 79p RRP, with 28.1% of retailers choosing this option, but the second-most common price, chosen by 16.3% of those surveyed, was 85p, representing a significant increase on RRP.
Unaffiliated stores typically opted for mark-ups, while the symbol stores tended to favour RRP.
SNICKERS DUO 83.4G
Average UK Selling Price
POST OFFICE IN MODERN LIVERPOOL SUBURB
HIGH STREET POST OFFICE IN CENTRAL SCOTTISH COASTAL TOWN
NEIGHBOURHOOD SHOP IN SUBURBAN BRISTOL
NIEGHBOURHOOD STORE IN RESIDENTIAL AREA OF COUNTY DURHAM TOWN
SMALL NEWSAGENT IN HIGH STREET OF HAMPSHIRE MARKET TOWN
NEWSAGENT IN RESIDENTIAL PART OF SUFFOLK COASTAL TOWN
|CADBURY TWIRL 43G||£0.55||£0.70||£55.00||–||£0.55||£0.55||£0.55||£0.90|
|MALTESERS CHOCOLATE BUTTONS BAG 32G||£0.70||£0.70||–||£0.75||£0.70||£0.75||£0.70||£0.55|
|KINDER BUENO MILK & HAZELNUT BAR 39G||£0.80||£0.79||£75.00||£0.85||–||£0.79||£0.85||£0.90|
|MARS DUO 85G||£0.89||£0.79||£79.00||£0.95||£0.79||£0.89||£0.90||£0.90|
|TWIX XTRA 75G||£0.89||£0.79||£79.00||£0.95||£0.79||£0.89||£0.90||£0.79|
|CADBURY WISPA 36G||£0.55||£0.79||£55.00||£0.95||£0.06||£0.55||£0.55||£0.55|
|KINDER BUENO WHITE 39G||£0.88||£0.79||£75.00||£0.86||–||£0.79||£0.85||£0.70|
|MILKY WAY MAGIC STARS 33G||£0.68||£0.65||£60.00||£0.07||£0.65||–||£0.69||£0.65|
|CADBURY STARBAR 49G||£0.55||£0.70||£55.00||–||£0.55||£0.55||£0.55||£0.55|
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
Size: 1,500sq ft
Type: parade Top Tip If a particular chocolate product is popular, any limited-edition variants of it usually are, too Chocolate is a huge category for me – it’s one of the biggest sellers in the store. The entire Kinder range is very popular with kids – I stock a number of variants at the RRP. In fact, I sell all products in this category at RRP. If I can, I make sure as many of the chocolate products I order as possible are pricemarked, too. While traditional Snickers and Mars bars are always steady sellers, I am seeing a shift towards bigger pouches and kingsize bars – any £1 chocolate share bags or pouches, or multipacks, will sell well.
Todmorden News Centre
Location: West Yorkshire
Size: 750sq ft
Type: village Top Tip Use promotions to help boost sales and grab customer attention in the slow-moving summer months We don’t stick to RRP – our strategy is to have a 30% profit margin and adjust our prices and offers seasonally. In summer, chocolate sales dip with the heat, so we order Cadbury pricemarked 55p bars and Nestlé two-for-£1 deals. When we stock offers such as these, we see customers picking them up just because they like a deal. We focus on offering a wide range – we’ve got 4m of chocolate display space, so we can stock a lot of different brands. We’ve added more sharing bags, and the new Maltesers Buttons have been a big hit.
Budgens Lower Earley
Size: 3,000sq ft
Type: forecourt Top Tip Make different sizes of your best-selling brands available to meet differing shopper demand We have six stores and follow Booker’s RRP as our pricing guide across all of our chocolate products. We do run multibuy promotions on chocolate, however, if they’re available, and our shoppers like pricemarked products, too. Our bestsellers tend to be the longstanding favourites such as Bounty, Mars and Twix, alongside anything that’s on a promotion. I’ve noticed that sales of multipacks – products like three or four-packs of chocolate bars or bags of mini-sized versions of standard chocolate bars – are increasing, too.
Stop Shop News
Size: 800sq ft
Type: parade Top Tip Be flexible with your profit margin strategy if a good deal or promotion is available I like to stick to a 35% profit margin. However, I stock and promote pricemarked products, even if the margins are lower, because it’s an incentive to encourage customers to buy the product and pick up a non-pricemarked chocolate bar at the same time. Multibuy packs are growing in popularity, but we’re a small independent newsagent where the basket spend tends to be quite small, so standard size products sell the best. Shoppers are loyal to particular brands; fads come and go, but KitKats and Dairy Milk remain our bestsellers.
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