With forecasters in the UK predicting that rising inflation could steer Christmas shoppers away from premium food and drink products this year, suppliers are being urged to evaluate what motivates shoppers as part of their commercial strategies for 2018 and beyond, says category management specialists Bridgethorne.
As the group explains, rising inflation doesn’t automatically mean shoppers won’t indulge in premium food and drink for Christmas.
Grocery Inflation
“The increase in grocery inflation has led to some people suggesting that shoppers under financial pressure may be cautious about buying premium products this year,” says Nick Kirby, Director of Shopper, eCommerce and Analytics at Bridgethorne.
“However, experience tells us that shoppers will want to make it the best Christmas they can. They may cut back in the short term in order to be able to afford to indulge over Christmas. However, a potential move away from premium, if it should happen, could still mean a boost for value products and ranges. Suppliers need to be aware of and plan for that possibility.”
Market Share
According to the latest Kantar Worldpanel data for the UK market, supermarket sales increased in value by 3.2% year-on-year in the run up to Christmas. However, with the figures showing that volume sales have increased by less than 1%, it is apparent that it rising prices that is underpinning positive supermarket performance.
This needs to be taken into account nay suppliers, Kirby adds, “Suppliers able to draw on available insights should translate their consumer and brand strategies into shopper strategies as a fundamental part of their short to medium term planning.
“This can then lead to the creation of activation plans clearly linked to strategic goals for target shoppers and which identify and prioritise the right messages, delivered at the right time throughout the shopper journey.”
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