Consumer spending on promotions up £600m

A sign of the times as consumer spending on promotions and deals increased 4% compared to last year in the four weeks to 18th February 2024.

This meant that an extra £586m was spent over the period compared to the same time in 2023, but what has triggered this?

Well, retailers such as Tesco, Sainsbury’s, Morrisons and Co-op are all running promotional offers exclusive to their loyalty scheme members alongside price-matching initiatives.

Promotional activities have benefitted both Sainsbury’s and Iceland especially, with the former seeing an increase in retail spend to 15.6% within the period to 18th February, compared to 15.2% last year. Iceland, meanwhile, has brought in increased shoppers with promotional offers such as “lunchtime favourites” and “cupboard essentials” which have seen its sales increase by 2.1%. 

In terms of price-matching initiatives, the big four of Tesco, Sainsbury’s, Asda and Morrisons have all adopted the strategy, hoping to prevent the rise of Lidl and Aldi. Lidl and Aldi continue to storm ahead, with Lidl’s sales increasing by 10.9% whilst Aldi experienced growth of 9.4%.

As the cost of living crisis seems here to stay, it is possible that the retailers will need to keep on their toes with promotional offers and loyalty schemes. After all, the customer is King.