Consumers like coupons - in the battle for consumer spend, discounts win
Shoppers’ savings are increasing with over a third of consumers saving at least £5 a month by using coupons – up 10% on 2013 figures according to Valassis Ltd. This adds up to benefits of around £3 billion a year for coupon hungry consumers.
The recent survey of 1,000 UK adults found that shoppers’ coupon cravings show no signs of diminishing. Promotional seeking behaviour is becoming increasingly ingrained among consumers with almost a third of people stating they are looking for promotional offers more than they were a year ago. This is coupled with a large decline in consumers stating that they never use coupons. Now, just 16% of shoppers state they never use this promotional mechanic versus 26% a year ago.
Although consumers are seeking out and benefitting from savings when they shop, supermarkets are not reaping the rewards. Almost all consumers – 93%, claim they will ‘shop away’ from their regular outlet if other retailers are advertising better offers. This behaviour is surprising given the increasing investment by many supermarkets to attract and retain customers.
The supermarkets who stand to benefit the most from savings savvy shoppers are the discounters and Valassis’ survey confirms their popularity. Nearly two thirds (64%) shoppers use these stores and this is a growing trend - 30% of consumers visit discounters more than they did a year ago. Britain’s “big four” supermarkets Tesco, Asda, Sainsbury’s and Morrisons all face a growing challenge from cheaper retailers with recent industry data showing sales at Aldi surging 33.5% and Lidl up 16.6%.
This bargain-driven behaviour among consumers remains prevalent despite many shoppers feeling more confident about their personal finance situation. Almost a fifth of people claim to now feel better off, a marked increase from 2013.
The survey also revealed that coupons are used widely across all demographics, with a quarter of ABs saving at least £10 a month, up from 15% last year. This compares with just 8% of DEs who save the same amount, finally busting the myth that coupons are for people who are less well off.
The survey of 1,000 nationally representative adults was conducted by Gfk NOP on behalf of Valassis between 11 – 13 April 2014.
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