GBP 3.7 billion worth of discounts disappear from supermarket shelves
The pressure on UK retailers to be more transparent in their pricing has seen the number of trade promotions fall to their lowest levels for 10 years, and in 2017, shoppers will receive GBP 3.7 billion less in promotional savings. This is according to a new report launched today by IRI, the provider of big data and predictive analytics for FMCG manufacturers and retailers.
IRI’s Price and Promotion study analyses over 300 categories within UK major multiples (to 27 May 2017) to see what impact the reduction in promotions is having on category performance. The study shows that there has been a 25 per cent reduction in the number of items on offer in stores since November 2012, when the Office for Fair Trading (OFT) first released its guidelines on promotions.
The average number of grocery lines on promotion this year has declined by 13 per cent, resulting in an 18 per cent fall in consumer savings via promotions compared to 2016. Volume on deal (VOD) has also dropped by 6.4 share points, the fastest since it started declining in 2014, and is now at its lowest level for almost a decade.
