The Portuguese Association of Distribution Companies (APED) estimates that promotions account for 41 per cent of total supermarket sales.
This figure represents an increase of five percentage points compared to last year, reports daily Jornal de Noticias.
According to Nielsen data, in the first six months of this year, half of detergents for washing and treatment of clothing were sold at a discount. The same happened with beers, with more than half of consumers buying them through a promotion.
Pingo Doce, for example, published 79 promotional flyers in the first 26 weeks of this year. The effect of the investment, claims the supermarket chain, helped increase sales by four per cent.
APED’s Ana Trigo de Morais said that this is a new consumption trend, “to which companies are seeking the appropriate responses", adding that profit margins "tend to be smaller".
In fact, a Kantar Worldpanel study shows that the number of promotions grew by 28 per cent in H1 2015, while sales volume was down by 2.1 per cent year-on-year.
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. To subscribe to ESM: The European Supermarket Magazine, click here.
