Festive or frugal

By Sarah Leccacorvi

As we steadily approach Christmas with a backdrop of falling sales and a crippling European economy, it will be interesting to see if our much adored season will be as festive as Santa’s grotto or a frugal as Christmas at Ebenezer Scrooge.

The impact of the economy has knocked consumers’ confidence and pushed them to be even more smart and savvy than ever before.  We’ve already seen the rise of the multi-store shop and with e-retail now firmly placed on the map, it’s harder for retailers to increase footfall and achieve shopper loyalty. Each year retailers approach Christmas with a twofold strategy. Firstly they launch their value strategy a couple of months prior, offering shoppers a great way to save at Christmas. Then they roll out their TV advertisement, promoting the culinary expertise of their Christmas range. It is a contradiction in terms really, however it is still Christmas and whilst shoppers will downtrade on some areas they will equally trade up on others. Mintel recently discovered that leisure is to be one of the hardest industries hit at Christmas whereas food and clothing are areas where shoppers are less inclined to cut back on. In-store, the POS reflects this twofold approach with both Christmas branding and pricing offers often competing for space.

Two great schemes launched this year to support the dwindling Christmas allowance include the Morrisons ‘Collector Card’ scheme. Here customers can receive £25 off their Christmas shop, as long as they spend over £40 in their previous six shops. And Tesco’s launched their Christmas Clubcard Exchange. This enables shoppers to exchange a £5 Clubcard Voucher for £10 worth of products ranging from clothing to champagne. It’s an intelligent way to get shoppers to spread their total shop across one retailer and hope they convert into loyal ones. A further scheme announced on the back of Sainsbury’s Price Matching was ASDA’s £5 Thank You voucher. It offers shoppers an ASDA voucher when they spend £40 in store. It is a strategy launched to retain their position as a key value retailer.

So where will the shoppers flock, to pick up their indulgent Christmas treats? Well if the responses to the TV advertisements are anything to go by, then apparently it is that value retailer ASDA! After seeing their advertisement that leverages LEITHS, a leading London cookery school to demonstrate the quality of their Christmas goods, 30% of shoppers would visit ASDA according to a new poll. Not far behind ASDA was Waitrose with 26% shoppers. With the combination of the authentic and classic Delia Smith and the creative and fascinating Heston Blumenthal, shoppers are already flocking in store to pick up Heston’s pine sugar mince pies and Delia’s Christmas Cake Kit, enabling even the novice baker to achieve their own Christmas creation. In fact, Heston’s Hidden Orange Christmas Pudding has been in such demand it is currently sold out in-store and is being sold for up to £150 on eBay!

 

Which retailer will enable shoppers to realise their Christmas dreams? The proof will be in the pudding…