Despite the price war currently underway in Australia's retail sector, only one per cent of shoppers believe they are getting better value, according to research by Nielsen.
The latest figures show low promotional prices are not driving topline growth in the current retail market, according to Nielsen’s head of retail, Kosta Conomos, who presented at the Efficient Consumer Response Australasia (ECRA) annual conference today.
“Just one per cent of shoppers believe they are getting better value overall compared to last year – and instead are using promoted products to supplement their shopping basket as a whole,” Conomos said.
“Neither retailers nor suppliers benefit from this behaviour and instead they need to work together to offer overall value for the consumer to differentiate themselves through a combination of national brands and great quality private label goods in a far more targeted manner, as opposed to marketing to the masses. The key retailer battleground is set to become how to deliver more value.”
According to Conomos, when asked what good value entails, just 20 per cent of Australian shoppers said ‘low prices’. In contrast, ‘fresh food and groceries’ was favoured by 30 per cent, 27 per cent wanted ‘good private label alternatives’; and 23 per cent said ‘good deals and promotions’.
Nielsen research also shows that more than half of shoppers who bought products on deals used promotions to stock-up on what they already buy – and weren’t expanding their basket overall, he said.
