The recent decision by Aldi to reduce waste and give the shopper 50% off expiring food is certain to increase footfall to the store. The question is will your brand benefit from the increased footfall or will it be pushed to promote as deeply as ever? Retail switching can generally be seen as negative when evaluating promotions. You should have sold at full price in one store, but because of your promotion you have sold more cheaply in another. However if switching behaviour is driven by external factors there is the potential to increase volume sold without the cost of promoting. Aldi’s latest development may indeed increase volume sold, but is this discounter already demolishing value
Aldi’s UK Marketing Director, Adam Zavalis tells us that shoppers are looking for a ‘special Christmas that doesn’t break the bank’. With household budgets compressed and shoppers facing an uncertain Brexit outcome, it is truly likely that manufacturers will feel the pinch. Using promotions to maintain and win share at this time is crucial. However not all promotions are alike, and some will work to erode profitability rather than bolster it. Top tips for Christmas promotions: Diversify your promotional portfolio, give the shopper what she wants, but get her to try new things too. By optimising your assortment and running multibuys on an array of products you can encourage new shopper be
