white paper

The Post-Covid Promotional Landscape

Trade Promotion Management

It will be more important than ever to measure the effectiveness of promotions. Brands need to ensure that promotions are executed well instore while also remaining more choiceful: fewer, more impactful promotions will be more commercially beneficial than manifold lukewarm deals.

The COVID pandemic has exerted a mixed
impact on a number of pre-existing trends
within grocery retailing. In some cases, this
impact was one of deep acceleration, such as
the growth of ecommerce in many markets
around the world. In other cases, the pandemic
reversed existing trends, an example being the
steady growth of discount market share in
many markets which went into reverse as
people preferred to shop instead at larger
stores.
In the case of promotions, COVID accelerated a
trend which has seen promotional intensity
decline since 2015. After many years of steady
growth across the world, fuelled by retailers
who were hungry for commercial funding, by
suppliers who were keen to grow market share,
and by shoppers who were happy to exploit a
bargain, 2015 saw a hight point in terms of the
share of groceries sold on promotion, with
around a third of the volume of groceries in
Europe being sold on deal. This reached over
50% in volume terms in the UK, or 40% in value
terms.

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