October 25, 2020

More aggressive prices and discounts at the supermarket to “catch an unfaithful consumer”


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Discounts and offers will be more frequent in supermarkets in the coming months. This is one of the conclusions drawn from the study “State of distribution in Spain” by Kantar, where it is noted that the consumer who arises after the pandemic is more “unfaithful” to his usual chain and compares more between products and prices. In this way, the Spanish are now more “demanding”, but they are also more “required” by the economic and health crisis, in the words of the head of Distribution of Kantar, Florencio García.

The consultant’s expert goes further and talks about “Possible price war” in the months to come. “It is expected that a distributor will try to make a gesture towards the consumer and position himself in a more aggressive way in prices and thus start a more important battle.” However, promotions and offers must be rethought within a plan that takes into account the increase in costs due to the largest investment in cleaning, protocols and security as well as the investment made by most distributors in digitization and in improving electronic commerce platforms. “If we are doomed to a price war, a complicated situation will occur in which not everyone will be able to endure,” says García.

“Right now the whole sector is waiting to see what happens during the next 15 days in the health field, but I think there will be a higher promotional activity from October to be able to adjust prices and to be able to retain loyalty to the consumer “, said García during the presentation of the study.

Omnichannel

Along with the foreseeable increase in promotional activity, Kantar expects other movements by the distribution sector such as the “reinvention of the shopping experience” with a reorganization of physical premises so that consumers are more comfortable and with more space . New opportunities were also mentioned within the “smart discount” (Lidl and Aldi), which are beginning to incorporate more products from manufacturer brands and which, in turn, follow share growth within regional supermarkets, where an increase will continue to be seen in categories other than that of frescoes.

At the same time, “omnichannel” will be another feature that will mark the behavior of the new consumer that arises in times of coronavirus. Spaniards will purchase products in person in different chains and will combine the shopping cart with other orders online.

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