Shoppers’ bills soar as stores axe multibuy cut-price deals
THE disappearance of supermarket multibuy deals has sent grocery bills soaring, retail experts said yesterday.
A huge drop in store promotions to ensure shelves stay full during the Covid-19 pandemic has led to shoppers splashing out more, analysts at Kantar say.
UK grocery inflation is 3.1 per cent, its highest level since January 2018.
Kantar blames the rise on supermarket chains axing many buy one, get one free (bogof) bargains and other offers.
Trade magazine The Grocer said that in February, before Britain went into coronavirus lockdown, promotions accounted for 31 per cent of the total sales value.
Rallying
That plummeted to 25 per cent in April and despite rallying to 27 per cent over the four weeks to May 17 it remains low as spending on multibuy deals fell 17 per cent.
Fraser McKevitt of Kantar said: “Shoppers are picking up fewer deals, especially multibuy offers, as retailers have wound them back to ensure shelves stay well stocked.
“The average promotion is worth just over 30 per cent off at the till so buying fewer items on deals has had a material impact on the average prices shoppers pay.”
The pandemic has also led to more people switching to shopping at convenience stores and independent retailers rather than travelling to bigger supermarkets.
Mr McKevitt said: “That convenience retailers typically run fewer deals contributed to the higher price shoppers were paying.”
A consumer survey by McKinsey & Company this month found 16 per cent of shoppers have changed their main grocer since the onset of the coronavirus crisis – with convenience stores reaping the benefits.
Forty-one per cent told researchers they had changed to find a less crowded shop while 25 per cent said finding cheaper prices was their main priority.
McKinsey senior partner Jessica Moulton told The Grocer: “Before coronavirus they were shopping around a lot.
“Now they are making fewer trips and consolidating what they buy.”