Promotions in retail, increasingly personalized, shorter and with greater emphasis on unit prices
Mhe, Retail consultancy carried out, between the days 15 and 21 of December 2017, a survey about promotional activity in the main retail brands in Spain. It involved 200 managers of more than 100 retail brands (different sectors: Fashion, Home, Leisure and Technology, Health and Beauty and CPG).
The study was focused on the implementation degree of certain variables within their respective chains, related to the promotional activity they perform:
- Nowadays
- Expected in the next 12 months
For each variable, they were ask to define if the implementation degree and impact will be Nonexistent, Low, Medium, High or Very High. gement optimization tool.
The % discount remains dominant. It is, by far, the promotional structure most used by the chains that answered the survey.
Multi-purchase loses weight compared to other types of promotions.
By sectors, CPG chains have decided fight for the margin, and there is a big reduction on the forecasted use of Multi-purchase promotions.
Mhe works for Retail chains and brands optimizing their promotional activity
Email is still the main promotion communication channel for the brands.
Social networks experiment the biggest increases in the next 12 months, specially Instagram. YouTube also focuses big expectations as promotional channel, although its current share is residual.
Personalization of promotions is expected to be given, mainly, by the study of clients’ purchasing patterns.
Loyalty programs will also be another important source of inspiration for the brands.
Promotions are increasingly becoming more ephemeral. Future implementation of promotions in periods of time lower than a week expected.
No changes are expected in the % of sales resulting from promotions.
Health and Beauty and Home Brands will be, in relative terms regarding the current scenario, the most active in their promotional strategy.
Leisure and Technology, given the current conjuncture of reduced margins, do not foresee an increase of promotions weight, already high, on the other hand.
