The tactic of reducing products on promotion by more than 50% is making a mockery of headline pricing and could lead to retailers needing help to rebuild trust and instil confidence in shoppers, according to FMCG and retail sales and capability consultancy, Sellex.
The firm’s Managing Director, Anthony Carr, stated that if the era of cheap food is over and retailers are making solid profits, they at least need to go the extra mile to be upfront and fair to shoppers.
He suggested that with consumer confidence in retailers at its lowest point since Which? started looking at it in 2012, and consumers more concerned about food pricing than ever, eagle-eyed shoppers are becoming more aware that all is not as it appears.
“People paint a picture of trust in supermarkets spiking during the height of the pandemic, though I’m not sure whether this is reality or people looking back through rose-tinted glasses,” said Carr.
“Either way, people need transparency and straightforwardness more than ever right now. Retailers have a vital role to play in protecting the shopper and holding suppliers to account on what they promote and how they display it.”
Carr stated that this means retailers and suppliers need to get their governance right whilst still striving to do the right thing.
“Climate change is going to increase food price volatility and ultimately drive food prices up,” he said. “But when some promotions are back to pre-pandemic levels, despite the headline price in the stratosphere, something is simply not right about it.”
He noted that there are steps retailers can take to help rebuild trust and instil confidence in shoppers. These include reserving secondary display opportunities for the pack configuration in the range, which truly represents the best value for money in that range.
“A well-known condiments brand has been very aggressive in this space recently, placing their mid-size SKU on secondary display, with a cheaper, larger alternative in the standard location,” added Carr.
Other steps to take include ensuring that larger packs off-promotion do actually represent best value. “Kitchen cloths more expensive as a 20 than 2 x 10 will have been fooling less-savvy shoppers for months,” he said.
Carr also suggests putting the cost per/g on all SELs and Barkers without fail, highlighting that the frequent absence of this is simply a retail discipline issue rather than a flagrant attempt to confuse the shopper.
NAM Implications:
- Facilitating true (and easy) like-with-like comparison has to be the way back to restoring trust for shoppers.
- And delivering ‘more than it says on the tin’ every time.
- Thereby making a repeat purchase less expensive in terms of promo-encouragement for suppliers & retailers.
- Hopefully encouraging shoppers to ‘tell-a-friend’…
- …surely the best type of endorsement?
