Consumers spent record amount on special offers in 2023
Consumers spent a record amount of money on supermarket special offers last year, market researcher Circana has found.
Of total supermarket turnover of €25 billion, almost a quarter resulted from special offers and discounts.
Some products were 25% to 30% cheaper while others were two for the price of one or even four for the price of two. Products like washing powder, shampoo, and toothpaste were on offer for as much as 70% off the original price.
“In total supermarkets gave away €2.1 billion in reductions to consumers,” Sjanny van Beekveld of Circana told broadcaster NOS.
The amount spent by supermarkets on special offers has jumped from 13% in 2007 to almost 25% in 2023 but because of inflation consumers paid for part of the bill themselves. According to market research GfK, a shopping cart of 55 regular household products went up in price by 13% in 2023.
“Prices for products in the Netherlands when they are not on offer are higher than in, say, Germany. That is why we can do these offers of buy one get one free, for instance,” said Dick van Creij, a customer strategist at Unilever. “That is the game. But producers and supermarkets are still making money or this would not be a way of doing business for long.”
Van Creij said he did find some offers “surprising”, such as five for the price of three, or even six for the price of two. “I don’t know where that will end. You have to keep up with the competition. But it’s good for customers.”
The increase in special offers is not good news for producers, however,” said Van Beekveld. “They find that customers no longer choose their brand but go for the coffee or toothpaste on offer,” he said.
Some supermarkets are also complaining. “The profit margins are plummeting,” Raymond Bakker of Plus supermarkets said, “When I see my customers only loading up their carts when things are on offer I could cry,” he told industry publication Distrifood.
Some products are never on offer, Van Beekveld said. “The products less likely to be bought on impulse are hardly ever cheaper, such as things like coffee creamer, sugar and water,” he said.
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