Supermarket price wars
Supermarkets are currently feeling threatened by the rise of Discounters Aldi and Lidl, and retailers (such as Tesco and Morrisons) are endlessly announcing price cut strategies in order to fight back and compete against rival retailers. Our latest Continuous Shopper Research reveals that shoppers are not converting to Discounters as their sole grocery stores, however, they are beginning to visit Discounters more frequently and Supermarkets should still be cautious of their Discounter rivals.
The latest findings from SBXL’s Continuous Shopper Insights research reveals that there has only been a 1% increase since the last quarter in the number of shoppers choosing to use Discounters as their main grocery store. However, our CSI findings show that more people than ever before are visiting Discounters at least once a month (65% of shoppers now visit Discounters, which is a 3% increase since last quarter).
Not only has this led to a 3% increase in shoppers spending at least something in Discounters since the last quarter, our findings also show a 1% increase in shoppers spending over 50% of their monthly food budget in Discounters.
As shoppers move to repertoire retail shopping, individual retailers will need to work harder to maintain share of spend… it’s not enough that a shopper is in-store weekly if they are spending more of their budget elsewhere. Working to retail loyalty is key… what do shoppers want? (it’s not just low prices).