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Promotion Levels On The Increase Across Europe, Nielsen Study Finds

The share of goods sold on promotion across Europe's grocery stores reached 18.2% in the four weeks to 4 October, its highest level this year, a new study by Nielsen has found.

According to the study, the average share of promotional sales is still much lower across 2020 compared to the previous year, however.

For example, in the four weeks to 19 April, as lockdown measures were imposed, promotional levels fell to 13.6%, while the following four week period (to 17 May) saw promotional levels at just 14%.

Country By Country

Across some of Europe's biggest markets, the share of products on promotion differs quite considerably – in Italy, the average promotional sales level in the 52 weeks to 4 October stood at 28.2% (down from 30.6% the previous year), while in Spain, it was just 15.8% (down from 16.8%).

In Germany, promotional levels in the 52 weeks to 4 October were 22.3% (down from 23% in 2019), while in the UK, they were at 21.8% (down from 25.4%), and in France, they stood at 18.9% (down from 20.3%).

“FMCG promotions reached very low levels in the second quarter of 2020, as essential goods were flying off the shelves," commented Anne Haine, head of intelligent analytics business unit in Europe, Nielsen

"But eight months into our new reality, the situation has levelled off. As retailers can fulfil demand and consumers feel the pinch of a difficult financial year, even a small discount may appeal to shoppers who are less confident in their financial prospects."

Bigger Baskets

According to Haine, in the last 52-week period, the value of consumer goods sold on promotion across Europe added up to more than €90 billion, which is €1.5 billion more than a year ago, even if overall promotional share has fallen.

"This reflects bigger baskets and spend in supermarkets as restaurants have been restricted or shut," she said. "We can expect promotional sales to continue to grow across Europe as the upcoming Black Friday and Cyber Monday events approach and consumers look for discounts in every purchase area.

"Shoppers want to save money, reduce the cost of gift buying and even escape from reality and find a substitute for missing out-of-home experiences.”

© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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