Value matters

VALUE ACTIVITY

Value for money Value matters

more than ever

Delivering value for money has never been more important to shoppers.

Value for money has been among the defining trends in independent retail for many years now and that trend shows no signs of relenting. In fact, the laser-like focus on securing fantastic value for money is arguably more important than ever after a very challenging couple of years for many shoppers.

Value for money means different things to different shoppers but however shoppers define it, great value continues to represent an enormous opportunity for Londis retailers.

After the excesses of the festive period and with concerns over everything from inflation rates to energy prices, shoppers want to know that they are getting the best value possible every time they visit your store. New data from Barclaycard suggests shoppers will “be more cautious with their discretionary spending” in the new year, with “43% expecting rising inflation to affect their household budgeting.”

IGD ShopperVista insights also suggest that concerns over the rising cost of living will lead to “savvy shopping becoming increasingly prevalent in the new year, with value top of mind.”

EDLP With value for money on or near the top of the priority list, how do Londis retailers respond?

Perhaps the most important challenge is to understand what shoppers mean by value for money – and then work out how to deliver it.

For some shoppers value is all about Every Day Low Pricing (EDLP), particularly on staple lines they buy every day like bread, milk and bacon but also on popular lines that they buy frequently, even if it’s not every day. Londis’s EDLP range covers the vast majority of important, big-selling lines and allows you to guarantee great pricing on fast moving lines every day of the week, helping to drive regular footfall as well as sales and profits.

For some shoppers value is all about Every Day Low Pricing (EDLP), particularly on staple lines they buy every day like bread, milk and bacon but also on popular lines that they buy frequently, even if it’s not every day. Londis’s EDLP range covers the vast majority of important, big-selling lines and allows you to guarantee great pricing on fast moving lines every day of the week, helping to drive regular footfall as well as sales and profits. A great example is the EDLP deal on key

VALUE TO BE ‘TOP OF MIND’ IN THE NEW YEAR

“Despite the decision by the Bank of England not to raise interest rates at the moment, the media has focused heavily on the rising cost of living. We expect shoppers to increase their focus on saving money at the start of 2022, to make up for any overspending at Christmas and prepare for the energy price cap which could see household energy prices jump by more than 40%. Shoppers remain highly sensitive to price rises and news of any shortages, which in turn impacts on confidence. ‘Savvy shopping’ will become increasingly prevalent again in the new year and value will be top of mind.”

Rhian Thomas Head of Insight at ShopperVista

confectionery lines featuring RSPs of just £1 on multi-packs of many of the bestselling brands and products including Yorkie and Aero bars.

Make sure you shout about these lines on external bread and milk posters, in-store and on social media. Make it easy for shoppers to choose your store for those daily essentials.

Promotions While it’s everyday value that says value to some shoppers, others are on the look out for promotions. Again Londis’s extensive rolling promotional programme means you have a year-round supply of fantastic deals to tempt your valuehungry shoppers with.

As part of a bigger group, Londis now has access to many outstanding promotions across all categories, a hugely powerful tool for generating new and additional footfall to your store.

Seasonal sales

The many seasonal events and occasions on the horizon also provide retailers with great opportunities to drive home their value messaging in-store and on social mediawith an array of attention-grabbing promotional mechanics.

Valentines Day: 14 Feb

This Valentines Day Londis will be running a host of heart-warming promotions on key themed lines including £3.49 on Lindor chocolate boxes and iHeart Prosecco for just £7.79.

Easter: 17 April

Value-hungry shoppers will also be treated to some cracking Easter promotions across some of the season’s biggest brands including a 3 for £1.50 offer on the iconic Cadbury Crème Egg and Mini Eggs for just £1.

Your regular promotional leaflet drop alongside a busy social media feed should help ensure maximum reach – and maximum footfall.

Own brand Another key focus for shoppers keen to secure the best possible value is own brand products. Booker’s own brand ranges are now well established with shoppers and have earned their trust with a winning combination of great quality and exceptional value.

Offering shoppers a value alternative to big brand equivalents in many categories can help drive sales – and for maximum impact, why not double face key own brand lines to make them unmissable in-store, all the while secure in the knowledge that you will secure fantastic PORs, often of 30% and above, while also delivering the value that your shoppers are seeking.

Euro Shopper is a particularly effective range which offers a choice of more than 90 family favourites at permanently low-prices, Londis retailers now have access to a vast and ever-growing selection of quality own brand lines.

HAVE YOUR SAY…

The way in which shoppers think about value has definitely changed in recent years. Shoppers are looking for competitive pricing across the board and not just the odd £1 promotion. Shoppers are also demanding greater quality when it comes to the value products that they buy. When they buy own brand products these days, they expect them to be great quality. Thankfully, the Booker own brand range is excellent quality and allows us to deliver quality as well as value every time for our shoppers.

These lines are being incredibly wellreceived, especially in the early part of the year when shoppers are extra-value conscious.

The key battleground for value now is chilled. That’s where the shoppers are looking for it most. They are much less concerned about the price of a can of beans or a bag of crisps, it’s the price of the pizzas, the ready meals and the meats that they are most aware of. Arjan Mehr Londis Great Hollands

Arjan Mehr Londis Great Hollands

Category focus While the search for value among shoppers affects every category, some categories are more important than others, according to Londis retailers.

For Arjan Mehr of Londis Great Hollands, fresh and chilled foods are the new “big value battleground.”

“Shopper are much less concerned about the price of a can of beans, a chocolate bar or a bag of crisps, it’s the price of the pizzas, the ready meals and the meats that they are most aware of.”

Arjan will do doubt be pleased then to learn that Londis has secured cool promotions on a number of Gazebo Cuisine’s sizzling Chef’s Creations lines including its Indian Meal Box featuring Chicken Tikka Masala, Bombay Potatoes, Pilau Rice, Onion Bhajis and Naan Bread on promotion for just £5.

For Haran Ponnampalam of Londis in Cannock in Staffordshire, shoppers’ desire to secure more bang for their buck is being evidenced by his climbing vape sales.

“Value for money is increasingly important to our shoppers, many of whom are young adults or students with not a great deal of disposable income,” he says.

“The general need for greater value for money is a key driver behind the success of our new vape offer.

“Disposable vape products such as GeekBar for example offer adult vapers the opportunity to vape the equivalent of 40plus cigarettes for less than half the cost of a pack of 20.”

Meanwhile for Tony Patel, owner of Londis Gorefield in Cambridgeshire, special deals on alcohol lines are helping to drive his sales.

“We take part in as many Londis promotions as we can and we support them with instore POS as-well as social media.

“Posts about alcohol promotions do always tend to get a positive response from shoppers and do help to drive footfall, especially if there’s a giveaway attached, such as free glass with each bottle purchased or something like that.

Simple ‘round pound deals’ are still one of the biggest winners though.”