Retailers under pressure to offer value despite declining sales
Category: #retail  By Saipriya Iyer  Date: 2022-11-09
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Retailers under pressure to offer value despite declining sales

According to credible sources, retailers are being forced to strengthen their value credentials, as the budgets of consumers become more constrained throughout the holiday season.

As per OC&C Strategy Consultants’ latest yearly Retail and Proposition Index report, which is in alignment with the British Retail Consortium’s (BRC) Retail Sales Monitor numbers, 43% of consumers plan to spend less over the next 12 months.

The report further reveals that retailers must take immediate action to communicate and set consistent and fair pricing to protect their customers’ trust while controlling inflation.

Retailers in the UK typically see a surge in their sales during the hectic holiday shopping season. However, the BRC’s recent data confirms that retail shops should brace themselves for a challenging winter season as consumers tighten their spending and demand more value for money from their favorite stores.

As per the analysis, shoppers at value-driven stores are more likely to safeguard their spending this year: Almost half out of the ten merchants that are least susceptible to a decline in disposable income are value-led.

The RPI also reveals that value-led stores in 2022 were far more successful than other retailers in convincing customers to make a purchase, with a conversion rate of 66% as opposed to 47% for mass market shops and 44% for premium players.

Customers are increasingly equating trust with value for money as they fight to keep the cost of their weekly shopping low, whereas earlier, they would associate trust with a product's dependability and safety.

Value-oriented retailers like Aldi and Lidl have expanded their combined market share by 2.4% since the beginning of the cost-of-living crisis as consumers are increasing their focus on value.

Experts suggest that retail leaders need to make some major changes in their business strategies to build competitive advantage and resilience around value to deliver and lead on it, as other criteria have taken a backseat in the face of difficult circumstances.

Source credit: https://www.prnewswire.co.uk/news-releases/retailers-under-pressure-to-provide-value-amidst-falling-retail-sales-301671263.html



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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