Supermarkets not doing enough to help us, say cash-strapped shoppers
Research finds British public are buying less, using value ranges and visiting several stores to make ends meet.
The research, from Aldata Solution, a provider of retail and distribution improvement software, reveals that almost two thirds (64%) of shoppers do not believe that retailers have done enough to reduce the cost of their weekly shop.
According to Aldata’s annual survey of 1,000 consumers, the older population (55+) felt most strongly about this, with 70% perceiving retailer support as disappointing; a surprising finding amongst a portion of the population usually most brand-loyal, compared to only 55% of the 18-34 age group.
The survey highlighted changing shopping patterns in the UK today, with 42% of younger shoppers more likely to turn to value ranges, showing little loyalty to well-known brands. Over a third of shoppers admit that they will go to several stores to get the best prices for their goods – although older shoppers are still focused on convenience over cost, with 22% of over 55s (compared to 14% of 18-34s) stating that they will keep going to one supermarket to get all their shopping in one place.
Other key findings reveealed there was promotion confusion amongst shoppers with 37% spending time working out if retail promotions ultimately benefit them, to calculate the best arrangement of goods for them
Shoppers dislike ‘bundled’ offers: 44% wished that they could purchase products at a low price, rather than being forced into BOGOF and similar offers; a sentiment which was higher in the male population.
42% of the survey expressed appreciation for tailored promotions and deals to cut their weekly costs.
“Retailers need to find more ways to support their shoppers,” says Mark Croxton, Head of Global Customer Support, Aldata. “This doesn’t necessarily mean slashing prices, but with the cost of living rising by 4.8%[1] since 2010 and over 40% of food and drink manufacturers expecting to raise prices further in 2012, retailers which are perceived as unhelpful will suffer as purse strings tighten. Indeed, 28% of British shoppers admit to buying less because of rising prices, so the threat of lower profits for retailers is very real.”
“Unless supermarkets and smaller food retailers have real insight into the pressures which affect shoppers and offer tailored assortments and solutions that they perceive as valuable, customer loyalty will be affected and sales could drop significantly during 2012,”.
“Current economics mean cash is critical,” concludes Croxton. “Promotions have led to a more cynical and cautious shopper. What is interesting is that shoppers are now equating loyalty schemes with ways to reduce the cost of their regular shop. The reality for the retailer is that tracking customer change is key; understanding the demographic of the store and how you serve that shopper community and adjust that offer to serve your customer better. Using insight to drive your whole supply chain and assortment planning at the store level has never been more vital.”
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