Promotions to address falling volume
Campaigns can be a way to pick up failing volumes when prices rise, according to Clearon, backed up by NielsenIQ. Clearon is a Swedish supplier owned system that handles coupons for trade and suppliers that want to promote products.
Rising prices lead to falling sales volumes. We see this everywhere in the grocery trade right now.
When Nielsen IQ studied just campaign volumes during the past year, it turned out that, among other things, eggs, functional drinks and snacks are some of the categories which were able most to increase sales through promotions.
An important reason for the increase is that these categories have had a great focus on price campaigns of various kinds, says Anna Ekström, commercial manager for the Nordics at Nielsen IQ. Because if there is one thing that consumers are looking for in times of inflation and price increases, then it is good offers.
We see a clear trend right now where consumers are looking for cheaper alternatives to the goods they normally buy, either by looking for extra prices and coupon campaigns or by switching to cheaper alternatives and private labels.
This is not surprising and we see a trend for “offers of the week” to gain more space in-store and that sales of goods on promotion are constantly increasing.