The number of offers keeps growing, as does the amount of space devoted to them. How much longer can retailers keep it up, asks James Ball
Is there space for any more promotions? As the monthly promo total continues to rise - albeit at a steadier pace than before - signs are emerging that many supermarkets are running out of featured space for deals.
Almost all of the top 10 brands this month were found in more than one fixture in each of the multiples, as retailers packed in extra pallets, front-of-store displays and other premium space in order to keep the number of promotions as high as possible.
"With own label juggling with branded offers, retailers really are cramming in as much secondary promotional space as possible to take advantage of the consumer demand for highly visible offers," says Assosia MD Kay Staniland.
"Coca-Cola, which is no stranger to the top 10 table, has used a variety of secondary featured space in each retailer - at least three different locations and display types - ensuring it has maximum impact right through the consumer's journey in store."
The question for retailers is how long this trend can continue before there is no room left in store to pack in more promotions.
The dwindling growth rate in promotions, suggests Staniland, is evidence that retailers are close to saturation point.
Many of the remaining big changes in the Promo Dynamic brands table this week were seasonal. Coca-Cola and Robinsons both launched new in-store campaigns to capitalise on the warm summer weather, propelling Coca-Cola from fourth to first place and Robinsons from 31st to 10th.
Robinsons had the biggest month-on-month increase in activity, a hefty 87.2%.
Cadbury, which had held the top spot in the promotional tables for several months, has finally began to scale back its activity and has reduced the number of deals by 32% since last month. However, although it has slipped to third in the table, it still has 23% more promotions than this time last year.
There was a massive increase in the number of own-label promotions this month, with the total number of deals shooting up almost 21% to exactly 1,400.
But this didn't reflect a change in strategy so much as the warm summer weather - while the sun was shining, retailers were quick to get salad and fruit into their prime featured spaces.
This squeeze on space left less room for the brands, which led to a small drop in the number of total branded offers. But the tiny size of the drop, at just 1.5%, is testament to the success retailers have had cramming the deals in.
Is there space for any more promotions? As the monthly promo total continues to rise - albeit at a steadier pace than before - signs are emerging that many supermarkets are running out of featured space for deals.
Almost all of the top 10 brands this month were found in more than one fixture in each of the multiples, as retailers packed in extra pallets, front-of-store displays and other premium space in order to keep the number of promotions as high as possible.
"With own label juggling with branded offers, retailers really are cramming in as much secondary promotional space as possible to take advantage of the consumer demand for highly visible offers," says Assosia MD Kay Staniland.
"Coca-Cola, which is no stranger to the top 10 table, has used a variety of secondary featured space in each retailer - at least three different locations and display types - ensuring it has maximum impact right through the consumer's journey in store."
The question for retailers is how long this trend can continue before there is no room left in store to pack in more promotions.
The dwindling growth rate in promotions, suggests Staniland, is evidence that retailers are close to saturation point.
Many of the remaining big changes in the Promo Dynamic brands table this week were seasonal. Coca-Cola and Robinsons both launched new in-store campaigns to capitalise on the warm summer weather, propelling Coca-Cola from fourth to first place and Robinsons from 31st to 10th.
Robinsons had the biggest month-on-month increase in activity, a hefty 87.2%.
Cadbury, which had held the top spot in the promotional tables for several months, has finally began to scale back its activity and has reduced the number of deals by 32% since last month. However, although it has slipped to third in the table, it still has 23% more promotions than this time last year.
There was a massive increase in the number of own-label promotions this month, with the total number of deals shooting up almost 21% to exactly 1,400.
But this didn't reflect a change in strategy so much as the warm summer weather - while the sun was shining, retailers were quick to get salad and fruit into their prime featured spaces.
This squeeze on space left less room for the brands, which led to a small drop in the number of total branded offers. But the tiny size of the drop, at just 1.5%, is testament to the success retailers have had cramming the deals in.
No comments yet