Promotions And Price Cuts - The Retail Market

UK - The last year has seen a tremendous amount of activity in the retail market with both liquid milk and cheese coming under pressure as the major multiples competed for market share with discounters.
calendar icon 30 December 2010
clock icon 1 minute read

Average price information (4 w/e) for discounters showed big cuts in own-label milk with the average price falling from 58ppl in July 09 to a low of 46ppl in April this year. This coincided with an increase in volume market share from nine per cent to 15 per cent. In contrast, the top four multiples maintained an average price of approx. 66ppl over the same period with volume share falling from about 60 per cent to 56 per cent. However, this all changed during August/September. Firstly, Asda reduced the 4-pint price from £1.53 to £1.25 with Tesco, Sainsburys and Morrisons following on later. Average price fell to 55ppl with market share returning to 60 per cent for 4 w/e 28 November 2010.

Cheese saw heavy promotions (particularly on Cheddar) across all branded products. This meant that for the 52 w/e 11 July 2010, the average price of branded Cheddar was 39p/kg less than supermarket own-label.

TheCattleSite News Desk

© 2000 - 2023 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.