Skip to content
Search
AI Powered
Latest Stories

'Loyalty card schemes making it difficult for c-stores to compete on price'

'Loyalty card schemes making it difficult for c-stores to compete on price'
iStock image
Getty Images

Independent c-stores are aligned to the convenience multiples on base pricing, but deep discount loyalty card promotions are making it increasingly difficult for the indies to compete on price, states new research from TWC, in collaboration with The Federation of Wholesale Distributors (FWD).

Audits conducted by TWC show that prices have increased by +11 per cent in independents, +13 per cent in Tesco Express and +17 per cent in Tesco Supermarkets in January 2023 vs. November 2021 (based on a list of more than 70 products sold in all 3 outlets). The price differential between the independents and Tesco Express has fallen because prices have risen more at the multiples, and at the time of the audit in January 2023, there was price parity between the two.


However, Tesco are using their ‘Clubcard Prices’ within their convenience format to offer discounts of up to 35 per cent, making it hard for independent convenience stores to compete with the multiples on price.

Independent retailers are not resting on their laurels, they are fighting for their share of local trade and pulling a number of levers to do this. Phone interviews with 150 independent and symbol retailers revealed that 93 per cent were trying to offer superior customer service and 89 per cent were supporting local charities and initiatives.

Independents competitive 230323

Many are also trying to compete on price, whether that’s by offering a wider range of cheaper products (78 per cent), more Own Label (65 per cent) or price matching vs. the competition (39 per cent).

Tom Fender, Development Director at TWC said, "We have a hypothesis at TWC that independent retailers believe the PMP is the promoted price. Base pricing in our audit shows that PMPs are working to create a parity on price, however encouraging tactical promotional activity as well could be a big win for the retailers who are not already doing this.”

“Promotions can encourage a number of behaviours – from driving footfall; increasing spend once shoppers are in store; trialing categories they didn’t intend to purchase; and encouraging trade up to better and best tiers.

Tom Fender March 2023 Tom Fender

“Our research evidences who is shopping in the independent convenience channel and it is not necessarily driven by cheapest on display – the shopper is NOT lower affluence and therefore these stores do not need to be the cheapest all of the time. Indeed, the most cash strapped consumers may well be avoiding the convenience channel altogether in favour of the discounters.

"We also know that households shopping at these stores are likely to be time pressed. We believe there must be a strong EDLP offer to drive loyalty and encourage shoppers to visit habitually, together with tactical promotions with clear objectives.”

More for you

Police officers in Trafalgar Square, London

Police officers in Trafalgar Square, London

Photo: iStock

New Respect Orders to target repeat perpetrators of anti-social behaviour

The government on Friday announced that they will introduce new Respect Orders as part of the Crime and Policing Bill.

The measure, a modernised version of the anti-social behaviour orders that were introduced by the last Labour Government, is aimed at the most serious offenders who plague town centres and neighbourhoods with anti-social behaviour.

Keep ReadingShow less
Exclusive: 'Faulty' pre-Horizon Post Office system led to hundreds of prosecutions

Exclusive: 'Faulty' pre-Horizon Post Office system led to hundreds of prosecutions

Ecco+, another pre-Horizon IT system that was introduced to post masters between 1992 and 1999, was also likely to be faulty due to which hundreds of sub post masters were prosecuted by the Post Office, a leading sub postmaster representative has said.

Speaking to Asian Trader today (22), Calum Greenhow - Chief Executive Officer at National Federation of Sub Postmasters (NFSP) stated that Ecco+ system that was introduced between 1992 and 1999 also created problems for sub post masters.

Keep ReadingShow less
Bestway Foundation UK donates £100,000 to The Duke of Edinburgh’s Award

Bestway Foundation UK donates £100,000 to The Duke of Edinburgh’s Award

Lord Zameer Choudrey CBE SI Pk, Chief Executive of Bestway Group, and Dawood Pervez, Managing Director of Bestway Wholesale, presented a cheque for £100,000 to The Duke of Edinburgh’s Award (DofE) at Bestway Group’s Head Office in Park Royal, London last week.

This significant contribution reflects Bestway's ongoing commitment to supporting impactful charitable initiatives that make a difference to the lives of young people across the UK. The presentation was attended by Ruth Marvel OBE, Chief Executive Officer, Laura Puddefoot-Knaggs, Head of Philanthropy and Clare Harris, Senior Relationships Manager from The Duke of Edinburgh’s Award, and Bestway Board of Directors, including Sir Anwar Pervez OBE H Pk, Chairman Bestway Group.

Keep ReadingShow less
GroceryAid: supporting grocery colleagues over the festive season

GroceryAid: supporting grocery colleagues over the festive season

As we head into the busiest time of the year for the grocery industry, GroceryAid is urging people to reach out to them if they find themselves struggling.

The charity helps grocery workers and their families through difficult times and offers a range of financial, emotional and practical support. This includes support for people facing stress, anxiety, low mood or loneliness, as well as debt advice and impartial financial support through GroceryAid’s online financial hub.

Keep ReadingShow less
Sugro UK partners with Britvic to launch industry-first sample box

Sugro UK partners with Britvic to launch industry-first sample box

Leading wholesale buying and marketing group Sugro UK has collaborated with Britvic Soft Drinks, a global organisation with 39 much-loved brands sold in over 100 countries, to launch a groundbreaking Fast Food Sample Box.

The sample box is specifically designed for ICS UK LTD customers, giving them a unique opportunity to sample and experience new Fast Food soft drinks offerings firsthand.

Keep ReadingShow less