Marked packs are proving to be a big hit for a number of retailers
VALUE for money appeals to just about everyone, and there’s no doubt that the appearance of a good deal does a lot to turn a browse into a purchase, which is why PMPs can be a real boon for convenience retailers.
That’s the view of the firms behind some popular PMP packs, and they’ve outlined just how crucial they believe the format has become to convenience as well as offering advice on how retailers can make the most of PMPs in store.
Mark Sterrat, head of market, strategy and planning at Lucozade Ribena Suntory, reckons stocking PMPs is a smart bet for the future, predicting the format will only prove more popular.
“Not only do PMPs account for a considerable proportion of market share, but they continue to be a growing profit opportunity as consumer demand rises.
“Price-marked soft drinks have a faster rate of sale in independent and symbol retailers than their non-PMP equivalents and this rate of sale is increasing, up 5.5% in the last year,” he said.
The soft drinks category in particular was highlighted by Sterrat as an area where PMPs shine in convenience, stores.
“Soft drinks prove particularly popular in the independents and symbols channels as more than half (57%) of soft drinks sold in independents and symbols are PMPs.
“In the past year alone, sales of PMPs have climbed an average of six percentage points in the independents and symbols channel,” he said.
One reason why PMPs may be resonating with customers in convenience is their ability to create a perception of value, and Sterrat suggested there’s more than a few customers on the look-out for a bargain without sacrificing quality.
“Clearly, shoppers are looking for ways to spend less without compromising on quality and PMPs represent value. 42% of customers perceive PMPs as being part of a promotion or at a reduced price and, additionally, 47% believe it also helps with the ease of shopping as they don’t have to ask for the price,” he said.
Matt Collins, sales director for convenience, wholesale, discounters and foodservice at KP Snacks said that PMPs can play a prominent role in generating convenience store sales, and he highlighted the format’s impact on the crisp and snack category.
“Crisps and snacks remain a vital category within the convenience sector, with 82% of shoppers buying them on impulse. £1 PMP ranges are growing at 11% versus non-PMP formats at 7.2%.
“At KP Snacks, we’re seeing the demand for PMP formats remaining strong as they provide shoppers with much-needed value from the bigger eat they are looking for and offset any potential price perceptions.
“And whilst we continue to increase our range of PMPs, we also continue to offer a comprehensive range of non-PMP to give retailers choice,” he said.
To aid retailers who wish to make the most of their PMP snack range, Collins also provided some merchandising tips on behalf of KP Snacks:
Merchandising tips
• Give shoppers great value by using PMPs and promotional offers, sited in prominent locations in-store to maximise sales.
• Stock the best-sellers your customers are seeking and use well-known brands to deliver strong shopper appeal.
• Cover all snacking occasions and shopper missions by tailoring your range to the preferences of your local customer needs.
• Entice shoppers to buy using high impact on and off shelf display. Use branded POS in your fixture to catch the shopper’s attention and use secondary display to drive impulsive purchasing.
• Make use of supplier planograms, such as those provided by KP Snacks, to make it easier for consumers to shop the category.
