Many Brits agree that retailer vouchers and coupons are important in determining where they shop, states a recent report, highlighting the importance of such attractions to gain more loyal shoppers.
According to NIQ, 44 per cent of Brits agree that retailer vouchers and coupons are important in determining where they shop – this rises to 55 per cent of those severely impacted by the increased cost of living crisis.
Moreover, 54 per cent of Brits stated that price discounts via loyalty cards were most likely to encourage them to buy a product. Consequently, a ‘special price discount’ for loyalty card holders is the top response (35 per cent) from UK shoppers when asked which different promotions are likely to influence where they shop. This is followed by an everyday low price as a close second (34 per cent).
As food inflation in March soared to 15 per cent, total till value sales rose to 11.5 per cent in the last four weeks ending March 25, up from 11.1 per cent in February, states the report.
Mike Watkins, NIQ’s UK head of retailer and business insight, said that the recent survey indicates that during a period of high inflation, shoppers are looking for different ways to save money and loyalty card savings are a ‘win-win’ strategy as they reward both shoppers and retailers.
"They give meaningful savings, shoppers prefer the immediacy of the discount and they are a promotional mechanic likely to influence where they shop, while also encouraging category purchasing.
“Sales should rally this week for Easter (against pre-Easter week last year), and sales at the grocery retailers could top £3bn this week, achieving growth in excess of 20% which will be welcome news for retailers. Over the next four weeks, supermarkets should also be able to maximise the ‘little and often’ purchasing shopping trend over the Bank Holidays in May, which also includes the King’s Coronation weekend.”
“Whilst inflation greatly influences shopping behaviour, there is an expectation that we will hit ‘peak inflation’ in the new couple of months. If this happens, the big supermarkets are well placed to fulfil new and different mission-based shopping trips. This is helped by having different store formats, as well as the breadth of ranges, typically not available at a discounter. All of this should help volume sales to eventually return to growth after over a year of decline," Watkins concludes.
