At the end of 2017, mySupermarket created a portfolio of every product available across four of the major UK retailers (Asda, Tesco, Ocado and Sainsbury’s) in every month of 2016 and 2017 to give us an accurate, whole store product range to compare. We wanted to find what is costing shoppers more and how brands and suppliers can use this to their advantage.
Firstly, we discovered that shoppers are paying more in every store.
Overall, the monthly average price in each store increased 2% in Asda and Sainbury’s and 1% in Ocado and Tesco. This proves food inflation is costing shoppers more.
We then unearthed the surprising category with the biggest price increase: tinned tomatoes, puree and passatta, which costs 18% (or 30p) more in January 2018 compared to January 2017. This may have been caused by the salad and vegetable shortage at the beginning of 2017 as prices of staple ingredients rose. This category price increase may also have a knock-on effect to the many items containing tomatoes as a base ingredient.
In contrast, the category with the biggest price fall was vegetables, which fell 17% from £1.34 to £1.11 in 2018 compared to January 2017. This may be a result of 2017s Vegetable shortage at the beginning of the year which may have resulted in higher prices which have since stabilised as the supply is steadied. Alternatively, the lower price of the category may be an echo of the cut price of vegetables in December 2017 where many supermarkets cut the cost ready for the festive period, some going as low as 20p per bag of classic vegetables.
What Can You Do?
Simple: Focus on Price and Promotions
With the news that their groceries are costing more shoppers will look for promotional strategies in order to save. Knowing which categories are costing shoppers more is an excellent way for brands and retailers to decide where to focus their price and promotion strategies.
You Can Go Further
But how can you decide what promotions to run? How can you track competitors pricing and manage your own product portfolios? How can you truly see the impact of your decisions (and your competitor’s) in results that are tangible?
Easy: Use Metrico
Metrico by mySupermarket provides a real-time and granular P&P data across all the major UK retailers. Smart Alerts give you weekly insights into your Price and Promotion strategies and also a run down on your chosen competitors performance. You can benefit from their achievements and learn from their mistakes. We also compile and distribute weekly Smart Reports that make it easy for you to keep on top of your Prices and Promotions, as well as your Market Share and Availability.
Why is all this important? Because as well as being the year where higher prices will likely mean more promotions for your shoppers, it’s also the year e-commerce finally grows up. Connecting the dots of the e-commerce journey, mySupermarket Business Solutions can create a map of the bigger picture and give you the insight you need to make 2018 the year your e-commerce truly delivers.
Find out more about the data insights available, and our range of solutions designed to give your brand the upper hand in e-commerce here. Or get in touch with one of our expert consultants and start to see the bigger picture in e-commerce now.