Supermarket promotions at their lowest for over a decade
The UK’s biggest supermarkets have shut up shop in regard to promotions as they seek other avenues to pursue more competitive rates in a landscape where Sterling continues to be devalued by Brexit uncertainty.
Tesco discounts
In the 28 days ending 25 March 2017, 26% of UK supermarket spend was committed towards items with temporary price cuts or multi-buy offers, matching a rate last measured in 2006, according to Nielsen retail data.
The reductions occur across all categories but most precipitously own-brand or private labels spend as just 18% of sales in the last year went on promotional spend, compared to that of branded goods which mustered 41%.
“The level of promotional spend has gone back to levels not seen since before the 2008/09 economic crisis,” observes Mike Watkins, Nielsen’s UK head of retailer and business insight.
“The last few years, have seen about a third of the typical supermarket shopping bill going on promotional items. However, to be more price competitive, supermarkets have turned temporary price reductions into permanent cuts, so there’s less promotional activity as many prices are cheaper all-year round.”
Underlining this activity was a shift “to simpler price cuts” making it easier for shoppers to manage their basket spend.
It comes as year-on-year takings at supermarket tills during the same period were down by 2.6%.