'Round Euro' Pricing A Winner With Retailers
Published on Nov 5 2012 11:45 AM in Retail
A survey of retailers carried out by Checkout in association with SHOP and RGDATA, has found that 'Round Euro' price points are by far the most effective in-store promotion devices. Two-fifths (40.6%) of retailers said that saying that such rounded pricing (i.e. products at €1 or €2 price points) was resonating best with consumers, as it facilitates cost control. It is markedly more popular than more traditional varieties, such as BOGOFs (Buy One Get One Free), cited by 26% of respondents, and Reduced Price (20% off, for example), cited by 25% of respondents. The survey also sought to uncover retailers' thoughts on brand loyalty in the grocery marketplace, and what grocery brands could be doing more of in order to maintain market share. Interestingly, approximately a third (32.3%) of respondents felt that brands should 'engage in new forms of customer engagement'; an indication that retailers feel brands should be more active in how they market themselves. A further 25.3% said brands should 'innovate more', while 24.2% said brands should offer more in-store promotions; a sign that retailers understand the need for both a creative and value-led approach by brands.