The importance of promotions in convenience
21 August 2014
Top-up shoppers are gravitating towards discounters and supermarkets and it is crucial that convenience stores aim to win these back, as there is currently 4% less share of trade spend in the channel coming from this mission. The fact is that even those shoppers who are continuing to use convenience stores to top-up are becoming less accepting than ever of the price premium. 40% expect to pay no premium whatsoever for items bought in convenience. And for those who are willing to pay some sort of premium, the highest they are willing to pay for milk, bread and/or cheese is 11%.
Promotions are one of the best ways to combat negative price perception, and those that buy on promotion actually end up spending more, they have larger baskets and they are more likely to buy on impulse.
Some symbols attract shoppers who by more on promotion, for example, 1 in 4 shoppers now state that they chose a Nisa store because of the promotions available. It is therefore no surprise that Nisa are managing to keep hold of the top-up mission, with 48% of their shoppers in store for this reason. The bottom line? 64% of top-up shoppers compare prices in c-stores and so c-stores simply must provide competitive prices and promotions to secure top-up shoppers and avoid losing them to the discounters and supermarkets.