Essential reading for retailers and suppliers in the home improvement market

High percentage of consumers make unplanned purchases at discount stores

Published: 10 August 2017 - Fiona Garcia

In a recent survey, 75% of consumers said they had made an unexpected impulse purchase - including tools and kitchen products - when shopping at a discount retailer. 

Three quarters of consumers said they made unplanned purchases in discount stores, like Aldi
Three quarters of consumers said they made unplanned purchases in discount stores, like Aldi
 

Retail consultancy Newton, which published the research conducted across 2,000 UK consumers, reveals that UK consumers are particularly enthusiastic about shopping for their groceries in the discount supermarkets and like talking about the unexpected items they purchased. Two thirds of those consumers added that they go on to recommend the items they bought to friends and family.

In fact, one in five consumers surveyed stated that it is these unusual items that encourage them to head into the store and one of the main reasons why they shop at these specific supermarkets, which include Lidl and Aldi. The majority of respondents claimed that they had predominantly purchased tools (over 18%) and kitchen gadgets (17.2%) at discount retailers when in store for their weekly shop.

“Whilst many of the multiples also sell these items, consumers seemed particularly delighted when they saw these products in the discount stores at a bargain price and therefore purchased them on the spot to avoid disappointment,” said the report.

Aldi has a number of home and leisure items in its 'special buys' this week, whilst Lidl has focused on a kitchen and garden offer ffrom Agust 10 and 13, with kitchen utensils, worktop protector and food storage, as well as stainless steel kitchen scales prices at £7.99 and kitchen knives at £2.49 each or two for £4. It will also offer 15cm evergreen shrubs at £1.34 each or four for £5, an indoor cress garden cress garden for children and a potted dianthus trio for just £1.99.

Newton head of grocery Paul Harvey commented on the findings: “The continued trend of consumers opting to shop at discount retailers shows no sign of slowing and, as a result, the multiples are likely to continue to be hardest hit.

“This additional consumer research further highlights that price isn’t the only reason why the discounters are doing so well.  Customers feel proud to recall the surprise bargain they found at a discounter and are motivated to tell their friends a story about their positive shopping experience.”

He added that retailers – particularly the multiples – “have to look at bolder tactics to make consumers feel passionate about their shopping experience and draw people back through their doors.”

In its paper, titled Beating the Discounters, Newton recommends that retailers should consider ‘8 steps to success’ to regain market share from the discounters:

  • Create just two tiers of products where possible: a mid-tier and a high tier
  • Increase the perception of the mid-tier so customers feel passionate about these products
  • Match price on the 1,500 SKU’s comparable to the discounters to become competitive

 

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