Price is not a key driver of grocery store selection with location, range of products and habit deemed more important, according to a new study.
Just 34% of the 1,530 UK shoppers polled by retail marketing firm TCC Global said low everyday prices was a key driver of supermarket store selection, compared to 48% that opted for location, 40% for range of products and 39% that chose their store based on habit and familiarity.
Bryan Roberts, global insight director at TCC Global said: “Supermarkets have naturally focused on pricing as a tactic to regain the market share they have lost to hard discounters, in the process creating speculation around a so-called ‘price war’.
“Virtually all competitors in the market have sharpened pricing to some extent, yet these results prove there could be reason to rethink this strategy, with price relatively low on shoppers’ priorities.”
“We are already seeing a change in tack from some corners of the market.
“Aldi and Lidl have recognised how high demand for their services isn’t necessarily being reflected in their sales due to location issues, and as such are in the midst of an aggressive period of expansion.
“Aldi alone are on course to reach their target of 1,000 store openings by 2022 to win consumers who would like to use their stores but currently can’t physically reach them.”
The survey showed that just 3% of shoppers are prepared to invest extra time to reach a preferred store, usually an M&S, which 14% of respondents said they had gone out of their way to make a trip to.