The latest UK grocery market share figures from IGD Retail Analysis, may suggest a subdued growth compared to previous years, but the future for global retailers may be brighter than it appears. Latest research from TCC, the world leaders in retail marketing programmes, reveals that despite difficult market conditions, such retail marketing programmes can provide effective ways of increasing retailer’s sales, driving footfall in-store and increasing basket spend to buck the market trend.
According to updated figures from IGD Retail Analysis, the UK grocery market as a whole grew by 2.3% between 2010 and 2011 and this growth is now predicted to grow marginally in 2012 with an estimated increase of 2.8%. (Source: IGD Retail Analysis 2011). Tesco’s market share reached 30.7% in the 12 weeks to April 15, compared with the 29.7% low recorded in the previous two months, while Asda has seen its market share grow year-on-year from 17% to 17.6%. Sainsbury’s held its share at 16.6%, while Morrisons dipped from 12.1% to 11.9% (Source: Kantar WorldPanel).
With growth slow, and the market dominated by four major players, UK retailers are looking for new ways to differentiate themselves and stake their claim to retail profits. Latest research from TCC has found that retail marketing schemes, such as voucher collection campaigns, have become an effective way of driving footfall in store and ultimately boosting retailer’s sales.
David Ringer, TCC General Manager United Kingdom and Ireland, explains: “In difficult economic times such as these, it is crucial that retailers continue to innovate and give their customers new, fresh reasons to shop at their store. Retail marketing solutions provide retailers with a way of creating in-store theatre, rewarding loyal customers, driving new shopper footfall and increasing basket spend”, he says. “Voucher collect schemes are hugely popular with consumers as they provide shoppers with a reason to shop in the store time and time again, each time meeting a minimum basket spend. Our research shows that promotions such as these are much more effective than straightforward price promotions and generate greater results in terms of both shopper loyalty and sales.”
Major retailers globally have recognised the benefits of such schemes, and TCC are now working with major global players such as Tesco, Carrefour, 7-Eleven, and brands such as Angry Birds, Hello Kitty, Laura Ashley and Royal Doulton to name just a few.
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