Our recent blog discussed the hot topic of price increases – and the impact on shared margin in wholesale. Within it, we touched on the thorny topic of the expected price differential between the convenience and supermarket channels. Here we summarise some recent price research conducted for our client, Unitas, together with some consumer data from TWC Trends.
Our conclusion? A 10% price differential continues to exist for Tesco and Sainsbury’s convenience stores, so this is the price point that independent retailers must try to compete with. However, not all consumers understand the cost to serve so price marked packs in the right position in store, with a c-store differential, will help with consumer confidence – especially at this time of continuous media coverage about rising prices.
Read more about the Savvy Shopper from TWC Trends Autumn Edition 2021.