How Christmas could have been more successful for retailers

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How Christmas could have been more successful for retailers

http://www.dreamstime.com/royalty-free-stock-photo-christmas-deals-santa-claus-shouting-megaphone-image35520535It’s been a mixed bag for the grocery industry over the Christmas period. Overall total grocery sales for the 12 weeks to 5 January were 0.6% higher year-on-year (Kantar Worldpanel). However, this success was mainly fuelled by Discounters and Premium retailers. Not our mainstream Supermarkets…

Asda and Morrisons took the biggest hit with both reporting declines of 1.6%, Tesco closely followed with a fall of 1.2%. Despite Sainsbury’s performing the best out of the big four, they still reported a fall of 0.7% over the Christmas period.

Discounters, on the other hand, only continued to grow; Aldi and Lidl saw sales up by 22.6% and 15.1%. Kantar also reports success for Premium retailers – Waitrose’s sales increased by 6.6%.

Our CSI data shows shoppers behaviour changes during the Christmas period. Shoppers want somewhere that offers them value for money as ever, but at this time of year they pay more attention to quality. Store location/convenience and seeking cheap items becomes less important for shoppers during December.

Shoppers want to treat themselves over Christmas… We see shoppers venturing more into Traditional Specialist stores during this vital trading period. Shoppers who rarely visit Premium stores are also more likely to buy their Christmas food from Premium stores.

So instead of focusing on the big price-war… more emphasis on giving a shopper the whole Christmas experience may well have halted the decline in sales experienced by the mainstream supermarket chains. Christmas isn’t just about the cheapest Turkey, or the “2-for-1” 12 pack of mince pies, it’s about giving shopper’s quality products, and the value of the entire shopping experience.