Continuous Shoppers Insights Response to Tesco’s Decline in sales

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Continuous Shoppers Insights Response to Tesco’s Decline in sales

Tesco has reported a third consecutive quarter of falling sales, revealing it is the worst sales performance in 20 years. It’s believed that this decline in sales is due to the intense competition they have faced from their discounter rivals (Aldi and Lidl).

While Tesco have shown positive signs of improvement by lowering prices on essential items in order to compete with Discounter rivals, data from our Continuous Shopper Insights programme suggests that Tesco could benefit from focusing on offering their shoppers value for money, rather than just low prices. 

While our latest Continuous Shopper Insights data reveals there has been a 3% increase in the number of shoppers shopping in Discounters since the last quarter, it’s also been revealed that 97% of Discounter shoppers are still shopping in Supermarkets. Our latest CSI data suggests that this is not necessarily a conversion from Supermarkets to Discounters, but more of an experiment where shoppers are using both Discounter and Supermarkets.

 

where-barOur on-going Continuous Shopper Insights data reveals that the most important consideration for Tesco shoppers during their grocery shop is being able to buy good quality products at good prices. Although price cuts/save deals follow as a secondary consideration, relying on low prices alone is not enough. Shoppers need to be reassured that the products they receive at low prices are also of good quality.

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So to summarise, our data suggests that shoppers use discounters for the must haves (price) and supermarkets more for the want to haves (value). By focusing on value-for-money instead of just low prices will not only encourage shoppers from converting down to Discounters, but will also hold loyal customers from trialling out new stores.