Shoppers becoming less focused on cheap items
Earlier this week, we showed that shoppers are becoming more optimistic about prices rising over the next 12 months. As well as this economic optimism we have also seen a decrease in shoppers being tempted to leave their main grocery store in favour of cheaper products elsewhere.
This suggests that as shoppers are no longer focusing on their wallets, retailers could benefit from shifting their current tactics of focusing on low cost to instead focusing on providing real value for money.
Findings from our CSI research suggests that most shoppers are now more willing to move to another store if they can be provided with better value for money. Recent reports from Which? support this; Which? supermarket expert Matt Clear states that value for money is the single most important factor for shoppers when deciding where to shop.
This is particularly relevant with the recent news that Tesco are offering shoppers cheaper products in order to compete with the likes of Aldi and Lidl. But are they offering the VALUE for money that the shoppers are looking for?
Shoppers are no longer searching for just low cost items, so putting emphasis on cheap products rather than value could lead once loyal customers to spend elsewhere. Focus should remain on providing good quality and value for money in exchange for loyal shopper habits.