Thursday 11 July 2024

Co-op’s Retail Media Activities Boosting Brand Sales In Neighbouring Grocery Stores

 Co-op’s Retail Media Activities Boosting Brand Sales In Neighbouring Grocery Stores



Research by Co-op – in partnership with Circana – shows retail media activity for brands in its convenience stores not only boosts its own sales but also generates up to four times more sales in surrounding grocery outlets.

Brands seem to benefit from a halo effect when advertising in Co-op shops, which can boost sales in the longer term. Circana found a ‘global beer brand’ RM Co-op campaign increased sales by 12% in Co-op stores + a 3% uplift in nearby non-Co-op stores.

The non-Co-op stores uplift was 4x total incremental sales value in Co-op stores. Circana said the impact on total sales due to halo stores where the sales uplift occurred and the larger pack sizes bought in those stores.

Dean Harris, Head of Co-op Media Network, commented: “The Co-op Circana results show when brands activate campaigns with Co-op, there is an immediate positive sales impact [not only] in our store, but also with competitors in the surrounding area. As an RMN, our main goal for the brands that advertise with us is to generate sales regardless of where that customer purchases the product.”

Convenience is a frequently shopped channel for top-up missions, often in addition to a bigger shop. The data showed that Co-op shoppers engage the most with other grocers, which provides convenience retail media with an extra amplifier effect on halo sales.

Harris continued: “The analysis of the beer campaign shows that by influencing brand purchase decisions in other non-Coop stores, the retail media activation is able to generate higher incremental sales by tapping into larger pack sizes available in supermarket stores.

“This halo effect data is incredibly insightful and gives further confidence to talk to our clients about the power of retail media in the convenience setting.”
Mark Hurst, EMEA Head of Retail Media at Circana: “As the advertising industry continues to expand traditional retail media inventory and accelerate digital and addressable channels and privacy regulations limit traditional measurement methods, retailers are increasingly in need of more agile and accurate ways to measure campaign performance across channels and tactics.
“Being able to analyse media lift through a range of sales-based measurement approaches, including Test & Learn, tactical comparisons and mid-campaign analysis, results in faster and more cost-effective decision making, enabling retailers like the Co-op to demonstrate brand impact and how it drives incremental value.”
Co-op launched its retail media network early this year, claiming it was the first in the convenience sector.

Namnews Implications:
* Think of the halo-impact when several mults are advertising the same brand via retail media…
* “(Our Goal) to generate sales regardless of where that customer purchases the product.”
* i.e. A compelling sales proposition.
* Begging the question: Who needs blunt traditional media?
hashtagRM

Aldi Still UK’s Cheapest Supermarket, Even When Compared To Loyalty Pricing Schemes

 Aldi Still UK’s Cheapest Supermarket, Even When Compared To Loyalty Pricing Schemes



After including loyalty prices for the first time in its monthly grocery goods price comparison, consumer group Which? found that Aldi still came out cheaper than Tesco and Sainsbury’s.

On a basket of 65 items, Aldi’s total came to £118.41. This was £14.49 cheaper than Sainsbury’s and £12.49 cheaper than Tesco for an equivalent list of items, even when discounts from their respective Nectar and Clubcard Prices schemes are included.

Julie Ashfield, Managing Director of Buying at Aldi UK, said: “With many households still struggling to make ends meet, we’re more committed than ever to remaining the UK’s cheapest supermarket. This latest Which? analysis shows that Aldi prices just can’t be matched, even with a loyalty card!

“At Aldi, we’re dedicated to having clear, consistently low, prices so shoppers know how much they’re spending long before they get to the till. And we’re really proud of the award-winning quality of the products we’re providing at these amazing prices.”

Aldi has seen its sales performance weaken this year as Tesco and Sainsbury’s step up their efforts to combat the discounters by expanding their price match schemes. Aldi has also faced price matching on new fronts in 2024, with Asda and Morrisons launching their own versions that also match Lidl.

In response, Aldi has ramped up its marketing activity and pledged to reduce more prices in 2024 than in any previous year, with it expecting to top the £380m investment it made in 2023.

NamNews Implications:
* But why the slowdown in growth?
* Aldi are determined to keep this ‘Cheapest Supermarket’ title”’
* ”..’by reducing more prices in 2024 than in any previous year…
* …with it expecting to top the £380m investment it made in 2023’
* Watch this space…
hashtagAldi hashtagCheapestSupermarket

Morrisons Develops App So Wholesale And Franchise Partners Can Top Up In Its Supermarkets

 Morrisons Develops App So Wholesale And Franchise Partners Can Top Up In Its Supermarkets



Morrisons is to allow its wholesale and franchise partners to top up on food and drink lines in its supermarkets at prices based on agreed terms.

According to trade magazine The Grocer, a newly developed app allows retailers within the Morrisons supply network to scan the items they need in stores using their smartphones.

Once they have completed their shop, they check out with a duty manager. However, rather than buying at normal in-store prices, the wholesale customer is invoiced on their existing agreed terms, with an electronic delivery note sent to their store EPoS systems and email.

Morrisons wholesale division currently stocks a range of over 9,000 products for delivery, supplying more than 1,600 stores across five countries. The top-up solution is seen as an extra tool for its customers, who will continue to be serviced by the existing delivered model.

NamNews Implications:
* Morrisons have, in effect, increased their wholesale/franchise distribution points…
* …to include all of their retail branches as a top-up facility.
* Neat!
* And probably makes them the best UK wholesaler in terms of coverage…
hashtagWholesale hashtagCashnCarry hashtagMorrisons