Sainsbury's has turned its back on the bogof promotions once championed by chief executive Justin King and is packing its shelves with half-price deals.
Bogofs made up 52% of Sainsbury's featured-space promotions in 2008, with half-price deals just 4% of the total. These figures have virtually reversed this year, with new data from promotions-tracker Assosia showing 59% of Sainsbury's deals are now half-price and just 4% bogofs.
"Consumers want to pay less for their shopping, not pay the same and get more," said Assosia MD Kay Staniland. "Half price is also a headline grabber. Rather than the usual save and money-off, half-price instantly feels like a bargain and would encourage shoppers to purchase something even if it would normally be outside their price range.
"On top of the desire to save money, high-profile campaigns by Wrap and councils to recycle more and waste less mean consumers are trying to reduce the amount of packaging and food thrown away."
Supermarkets came under fire for bogof and multibuy offers last year, after Wrap revealed the UK throws away £10bn of food every year. At the time, Sainsbury's boss King defended the bogof in the Telegraph.
Asda announced in February it was eliminating bogof offers, shifting to 'round pound' deals such as its pledge to sell 200 health and beauty and 100 frozen food lines at £1 all year.
The other big four retailers have also cut back on the bogof in favour of half-price and money-off deals.
Sainsbury's promotional shift comes just ahead of its annual results, due on Wednesday. Analysts are expecting a strong performance, with estimates of £530m profits and margins to recover to above 3%.
"There is every indication results will be good," said Dave McCarthy of Hobart Capital. "Sainsbury's operating margin was 3% and profitability should be growing faster than sales because this is a business in recovery."
Bogofs made up 52% of Sainsbury's featured-space promotions in 2008, with half-price deals just 4% of the total. These figures have virtually reversed this year, with new data from promotions-tracker Assosia showing 59% of Sainsbury's deals are now half-price and just 4% bogofs.
"Consumers want to pay less for their shopping, not pay the same and get more," said Assosia MD Kay Staniland. "Half price is also a headline grabber. Rather than the usual save and money-off, half-price instantly feels like a bargain and would encourage shoppers to purchase something even if it would normally be outside their price range.
"On top of the desire to save money, high-profile campaigns by Wrap and councils to recycle more and waste less mean consumers are trying to reduce the amount of packaging and food thrown away."
Supermarkets came under fire for bogof and multibuy offers last year, after Wrap revealed the UK throws away £10bn of food every year. At the time, Sainsbury's boss King defended the bogof in the Telegraph.
Asda announced in February it was eliminating bogof offers, shifting to 'round pound' deals such as its pledge to sell 200 health and beauty and 100 frozen food lines at £1 all year.
The other big four retailers have also cut back on the bogof in favour of half-price and money-off deals.
Sainsbury's promotional shift comes just ahead of its annual results, due on Wednesday. Analysts are expecting a strong performance, with estimates of £530m profits and margins to recover to above 3%.
"There is every indication results will be good," said Dave McCarthy of Hobart Capital. "Sainsbury's operating margin was 3% and profitability should be growing faster than sales because this is a business in recovery."
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