Promotions are a powerful way to boost sales but are you overdoing them and damaging your margins?

July 13, 2016
Back to News

Promotions - Are you overdoing them?

Research carried out by global research company IRI has indicated that despite offering more promotions than the rest of Western Europe, UK retailers are not seeing the potential benefits of the promotions in their store. To help invest in only the best deals, we have analysed promotions data and uncovered insights that will give your promotional offers an edge over the supermarkets and other competitors.

UK retailers offer more promotions than ever before in virtually every product category, but these do not always result in maximum profit and can be a wasted opportunity.

Promotions are often driven by manufacturers, so that many are the same in all retail outlets. You don’t want to have the same promotional offers as your biggest competitors such as Asda, Tesco or Sainsbury’s…. So why not encourage your customers to explore new lines with carefully selected promotions which are planned to be more profitable?

Impulse purchases are among the most common buys in convenience stores, and it could be useful to discover how your competitors are engaging with their customers.

According to Him! Research 2015, 12% of shoppers pick up products from displays from aisle ends. These are great locations for showcasing deals and raising awareness of different categories and new lines.

It is crucial that your promotional offers differ from your competitors, making your customer experience unlike that offered by the competition.

2015 CTP him! data suggest that convenience store shoppers are more impulsive now than they have been since before the recession – 18% are looking to be inspired in store and 1-in-3 purchasing decisions are made in store.

Appeal to the top-up shopper by promoting a select few of your top-up items.

The Small Store Shopper 2015 indicated that 43% of shoppers use convenience stores to top-up on bread, milk, tea, and eggs.

Have related items on promotion to support the basic top-up items. Things like flavoured milk, sugar, flour and sandwich fillers. Or upsell on your stable goods with ‘buy one get one free’ promotions.

Most customers will leave the store with more than they came in for. Good promotional offers on things they need but not necessarily want will encourage impulse buys. Use the reports on your EpoS system to inform your promotional strategies.

Research by MediaScope 2015 shows that 20% of what shoppers buy at food stores are bought on impulse.

Use this insight to show shoppers that you offer more than just bread and milk.

Convenience stores are the first choice for the distressed – ‘I’ve run out and need it now’ shopper, but gaining credibility for this ‘planned’ top-up shop is what is driving larger basket shops to convenience stores. (him! Research)

Sell the way your customers want to buy rather than the way you like to sell and entice shoppers with a range of items they hadn’t thought of.

According to Distribution of Convenience Store sales in Great Britain 2015, only 2.3% of convenience stores sell household items.

This is low, considering that customers, especially women, like investing in their homes. Household is a massive gap in the market that needs to be filled. Use the TRDP Local Loyalty scheme to promote the household category in your store.

We see spend on products such as household items double and continue to grow with the age of the spenders. Young adults spend more than double the amount from £5 million to £11.9 million as they move on to the next stage in their lives (News by ParcelMortel 2015).

Women dominate the global market place, so household items are important sales drivers for convenience retailers.

Ultimately, it’s about knowing your target audience, whilst also being aware of what your competitors are promoting.

Meeting the ‘needs of the shopper’ is undeniably at the centre of driving footfall in any convenience store (him! Research 2015).

Get free, direct insights
Receive weekly content as well as our monthly insights newsletter for free, direct to your email inbox.

No Thanks


NHS App with advice for those who have to isolate
Retailers React – Shelf Shortages and the Pingdemic 

Our survey amongst the Independent convenience store community across the UK last week has shown that they are being seriously impacted by the so-called “pingdemic.”

Read More
Analysis of the Euro Effect 

The excitement of the Euros has dissipated for football fans but at the end of the day, it’s all about the results… till results! Did UK convenience stores stick it in the netted shopping bag?

Read More
Summer Madness 

The Summer months are cautiously approaching -whilst Summer 2020 was spent at home, 2021 feels like it might be spent outside – this time with friends and family.

Read More
×