Morrisons’ shoppers are the most price conscious
Morrisons announced further price cuts in order to compete with Discounters and to counter their fall of 7.1% in sales. Despite Morrisons’ best efforts to provide shoppers with low prices, data from April’s Continuous Shopper Insights suggests that Morrisons’ shoppers still fear grocery prices will continue to rise. Morrisons need to provide their shoppers with more reassurance.
77% of Morrisons shoppers in April 2014 expected grocery prices to rise in the next 12 months, which is not only a 2% increase since last quarter but is also the highest out of all the major retailers (Big 4 and Discounters).
Findings from April’s CSI data also reveals that Morrisons’ shoppers are the most likely out of the big four retailers to be switching from branded products and towards own label products; 38% of Morrisons shoppers felt as though they are buying less branded products than they were last year, and 30% of Morrisons shoppers expect to be buying less branded products over the next 12 months. This move shows that shoppers are actively trying to reduce their basket spend.
The price cut strategy is seeing some positive effects as our data reports a 2% increase in the number of shoppers who choose to shop in Morrisons as their main grocery store since the last quarter. Loyal shoppers are not looking to move store, instead they are just looking to spend less. Morrisons need to reassure their loyal shoppers about prices, to reduce the risk of possible decreased basket spend in their stores. The new strategy should be used to focus on increasing spend of loyal shoppers as well as bringing new shoppers in.