Asda is leading the way with the depth and number of price cuts across OTC medicines following the abolition of resale price maintenance.
According to figures from Information Resources, all the major supermarkets were quick to respond to the legal change last month.
Nurofen tablets (16s) for example fell from £2.29 at Asda on May 12, to £1.30 on May 19, while Sainsbury dropped the price to £1.35 and Tesco to £1.78. Some brands, such as Vicks Vaporub and E45 cream were unaffected at all the chains.
ACNielsen said as a result of the changes, volume rose sharply by 8% for the w/e 19 May, while it was up by 3% for the w/e 26 May. Value sales for both these weeks were only up 3%. It said it was too early to say if there would be a long-term effect, or whether it would affect local pharmacies in the long run.
Tactical promotions were evident, with hayfever remedies featuring high on the list. This may well indicate the trend for the future to price promote seasonal products where demand is intense and visibility is high.
- See feature, page 47.
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