Retail promotions: Avoiding a promotions catastrophe

This article discusses the looming crisis in UK supermarket trade promotions which are depressing sales volumes and margins.

Retail promotions: Avoiding a promotions catastrophe

Richard Moule IRI

Brand owners must wean the supermarkets off their addiction to trade promotions if sales volumes and margins are to rise for everyone.

The world of price and promotions within UK retailers is at a tipping point, with a potential crisis looming.

Loyalty to brands and stores is at an all-time low because shoppers are deal-weary. They see little difference between the supermarkets, and the UK has the lowest number of consumers in Europe who choose a store based purely on the promotions inside.

The original purpose of promotions was to...

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