Loyalty programmes are witnessing rapid adoption within the convenience sector while own brand products continue to gain traction among consumers, with value-led shoppers drawn to promotional offers, states the Lumina Inteliigence report released today (2).
Lumina Intelligence's Price, Promotion & NPD Report 2024 delves deep into pricing, promotions, and new product development trends, aiming to elucidate the evolving landscape of consumer behaviour and retailer tactics.
The report stated that spearheaded by initiatives such as Tesco Clubcard Prices and Co-op Member Prices, loyalty programmes are witnessing rapid adoption within the convenience sector. Retailers are leveraging these schemes to drive repeat visits and engagement, particularly in food-to-go segments.
The growing presence of hybrid work arrangements is anticipated to positively impact food-to-go sales, as consumers seek convenient meal solutions amidst changing lifestyle patterns.
Promotion shoppers play a pivotal role in the success of convenience stores, exhibiting higher spending and visitation rates compared to typical shoppers. Their preferences and behaviours are integral to shaping promotional strategies within the sector, states the report.
Seasonal periods, such as Christmas, witness a narrowing of the price premium gap between convenience stores and superstores, as retailers pass on cost savings to consumers through increased promotional activity.
Own brand products continue to gain traction among consumers, with value-led shoppers drawn to promotional offers and quality-led shoppers embracing premium and vegan options. The report highlights the competitive landscape within essential categories and the premiumisation trend driving innovation.
Impulse innovations, including expansions in soft drink flavours and environmentally-friendly options, are driving new product development strategies. Balancing production costs and store ranging challenges remains critical for retailers seeking to capitalise on emerging trends.
"This report offers invaluable insights into the rapidly evolving landscape of the UK convenience market," said Insight lead Sunjaya Nagaraja at Lumina Intelligence. "By understanding the nuances of pricing, promotions, and new product development, stakeholders can make informed decisions to drive growth and innovation within the sector."
