Consumers driven by promotions and special offers

A Nielsen study, SA Shopper Trends 2015/2016, reveals that shoppers exhibit promotion seeking behaviour, actively searching for special offers at grocery retailers. Many admit to searching for promotions while shopping; others regularly switch brands because of promotions.

The study, which was carefully balanced to ensure it is representative of age, income and gender across SA, was drawn from a national sample of 2,534 main grocery buyers, based on in-depth, face-to-face interviews. According to Nielsen’s Consumer Insights director, Esti Prinsloo, the study reveals that consumers have become increasingly price conscious within their choice of stores and actively search across media platforms, including broadsheets and retailer websites for promotions. She says there is a definite gap in the market for retailers to provide more information via mobile channels.

In a year in which most consumers have been pressed for cash, they are aware of the price fluctuations of the products they purchase regularly, they know what the items cost and they take note of price changes. The majority of shoppers say they now purchase only the essentials and have cut down on luxuries. Others say they buy in bulk to save money.

Though the study shows that grocery shopping is generally a planned activity, with shoppers knowing what they need to buy beforehand, 76% of respondents say they will purchase products on promotion while they are in a store.

A key focus area of the study investigated the shopping habits of consumers and asked them what type of stores they had visited in the past week. Supermarkets remained the most popular retail channel, but had a decrease in shopper frequency, while use of locally based stores such as spaza shops and butchers increased. “There is a trend towards the ‘neighbourgoods’ type approach. This could be related to the ability of these outlets to offer a more flexible shopper experience and therefore better meet the needs of shoppers, in light of the financial pressure consumers are under,” says Prinsloo.

The study also brought to light the fact that consumers tend to visit retail websites for information as opposed to shopping – looking for information on special offers, product information and recipes, tips and ideas.

The report advises retailers to expect shifts between premium, mainstream and economy brands as consumers are forced to consider cheaper options; instead of larger pack sizes, consumers are choosing smaller options and they’re also likely to shift between branded options and private labels, which are perceived to be cheaper with similar or better quality. Though the e-commerce market remains small, consumers at the higher end of the market recognise the deal seeking and convenience aspects of this channel. Loyalty programmes with benefits such as cheaper products are becoming increasingly popular, as are the retailers that offer them.

In a market where many consumers are forced to choose between nice-to-haves and essentials, they’re enticed by price and promotion and are willing to seek out better deals. However, quality remains an essential element. 

The big take-out: In a tough economic climate, consumers are actively seeking out deals, promotions and ways in which to save money without compromising on quality.