Let’s talk about the prices of products in convenience stores. They used to get a bit of a bad rap and have gradually been coming down to levels people expect. And all of this is because of (dare we say it) supermarkets.
The brutal size of some supermarkets means they get the best deals out of FMCG suppliers and can therefore sell products for a fraction of the RRPs. It’s forced the convenience market to become a lot smarter and customer focused in recent years – but the rise of “express” and “local” versions of supermarket brands has piled on the pressure.
Now there’s light at the end of the tunnel. Due to pressures from the Competition and Markets Authority (CMA) over pricing transparency and the rise of discount stores and pound shops that thrive on easy to understand pricing strategies, supermarkets are halting promotions on products.
According to IRI, analysts of the retail market, their Price and Promotion study found that the number of products on a promotional deal in supermarkets had dropped by 25% since November 2012. In 2017 alone, the level of discount on promotions has fallen by 18% already. This all sounds very negative, but for convenience stores and small retailers, it’s a real bonus.
Because guess what, it means small businesses can cash in! In one of our blogs a couple of weeks ago, one of the steps to increase footfall was to “Deal or Deal”. Even with the number of products on promotion falling, there’s no denying that it’s difficult to walk into any shop without seeing a deal on something. For small retailers, the trick is to test what your customers value most. If you own more than one store, this could vary between each of them so speak to staff, store managers and customers in each location. Once you know what makes them tick, find a way to get their favourites on promotion. Then sit back and watch the results.
Not only will this mean your customers appreciate your business for discounting their favourites, but it may also mean you begin to beat supermarket prices, especially if they keep reducing promotions at the current rate. It’ll all end up improving the image of your business and driving more footfall, sales and profits.
If that’s not enough, check out our list of ways to drive footfall into your store. If we’ve missed something important, tweet us @YourCash!