Sugar confectionery is largely an impulse category, with consumers purchasing these products to snack on the go. Stores in central locations, such as those in Brighton and London, do not seem worried about being competitive with their pricing, with prices of up to 20p more than Booker’s RRP.
In the price distribution table, the majority of retailers are stocking sugar confectionery above RRP. More than 18% of stores are stocking Skittles 55g at 55p – a 6p increase on Bestway’s RRP – so retailers should review their prices to drive sales.
Independent stores can get away with it because of the impulse nature of sugar confectionery, which makes shoppers less sensitive to price. They are also more likely to stock single versions than supermarkets, giving a competitive advantage.
Stock these products in easy-to-access areas, next to chocolate or by the tills, as well as near food to go, to increase basket spend.
|PRODUCT||AVERAGE UK RETAIL PRICE||BOOKER RRP||OFF-LICENCE AND C-STORE IN SUFFOLK TOWN||HIGH STREET SHOP IN SOUTH WALES TOWN||HIGH STREET SHOP IN SMALL SOUTH WALES TOWN||WEST LONDON HIGH STREET C-STORE||NEWSAGENT IN CENTRAL BRIGHTON||NEWSAGENT IN NORTH SCOTLAND COASTAL TOWN||SAINSBURY’S||TESCO||ASDA|
|NESTLE ROWNTREE FRUIT GUMS TUBE 48G||£0.60||£0.51||£0.60||£0.55||£0.69||£0.70||£0.60||£0.55||–||–||–|
|VIMTO FIZZY RIPPA ROLL 38G||£0.50||–||£50.00||–||£0.50||–||£0.50||–||–||–||£0.50|
|NESTLE ROWNTREE JELLYTOTS BAG 42G||£0.59||£0.51||£0.60||£0.65||£0.69||£0.50||£0.65||£0.56||–||–||–|
|NESTLE ROWNTREE FRUIT PASTILLES 52G||£0.62||£0.51||£0.60||£0.65||£0.69||£0.70||–||£0.55||£0.55||£0.60||£0.60|
|FRUITTELLA STRAWBERRY 41G||£0.56||£0.55||–||£0.50||–||£0.70||£0.60||–||–||–||–|
|MARS SKITTLES 45G||£0.60||–||£0.60||£0.65||–||£0.70||–||£0.55||£0.55||£0.60||–|
|HOSTA MR TOM PEANUT IN TOFFEE 40G||£0.50||£0.40||£0.55||£0.50||–||£0.70||£0.50||–||–||–||–|
|STARBURST FRUITY CHEWS 45G||£0.58||£0.49||£0.55||–||£0.69||£0.70||£0.60||£0.55||£0.55||£0.60||£0.60|
|LEAF CHEWITS STRAWBERRY STICK||£0.45||£0.45||–||–||–||£0.70||£0.49||£0.45||–||£0.40||–|
|MENTOS CHEWY FRUITS 38G||£0.59||£0.55||–||–||£0.79||£0.70||£0.60||–||£0.40||–||£0.85|
|BASSETS CHERRY DROPS ROLL 49G||£0.86||£0.64||£0.55||£0.70||£0.75||£1.00||–||£0.69||–||–||–|
|NESTLE POLO FRUITS BIGGER 37G||£0.58||£0.50||–||£0.50||£0.69||–||–||£0.60||–||–||–|
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Hopes of Longtown
Size: 945sq ft
Type: VillageTOP TIPKeep trying new things, and talk to your customersWe always aim for a minimum profit margin of 25%. We stock a mixed product range and are always looking to try new things to stay exciting and keep customers returning, especially young children who purchase sugar confectionery. We make good use of our products and they are often bought for cake decorations in our area, so we definitely have a mixed market. Sugar confectionery in particular is stocked in our children’s area. We do stock some by the till, but I try to keep chocolate stocked there as it sells better.
Location: Horsham, West Sussex
Size: 1,800sq ft
Type: ResidentialTOP TIPStock a wide variety and know your customersWe price our sugar confectionery at RRP. We try not to overprice our products because customers already know they are unhealthy, so high prices could put them off. There’s a lot of competition in Sussex, so customers do have a choice of where they shop. Many of these products are price-marked and we use many suppliers who price-mark these products at three for £1, making them quite popular. Stocking them by the tills and near the gum has proven to be successful, with customers picking them up while they wait in line.
Size: 2,995sq ft
Type: ResidentialTOP TIPStock large and small bags to boost spendingWe premium price all our sugar confectionery, whether it’s in a bag, tube or packet. We do this because it increases the overall margin and we premium price where we can, but we also stock a mix of price-marked products. Sugar confectionery is stocked near the till and down the aisle, next to chocolate, which boosts sales in both categories. To achieve a great margin and great rates of sales, it’s important to stock tubes and bags, like Skittles and Haribo, as this helps with the upselling of products.
Loch Lomond News
Location: West Dunbartonshire
Size: 300sq ft
Type: TouristTOP TIPCreate big and bold displaysWe’re located in a tourist area, so sugar confectionery is very important to us. In the summer, the shop gets too hot for chocolate, so we put key lines in the chiller and cut down our range. Our shop is quite small, so we offer a very tight range of bestsellers, such as Haribo and One Pounders sharing bags, as well as Trebor and Rowntree’s singles. Our store size also makes creating big displays a challenge, but sugar confectionery often comes in eye-catching outers, so you can use these to make displays if you need to.