Focus On - Value & PMP

Why are PMPs so Important? 41% of shoppers make purchases on promotion in convenience stores, with percentage- off deals and multibuy offers being the most popular pricing strategies. Implement effective promotional strategies and offer great value on popular brands. Use prime sales space for attractive promotions linked to key occasions and celebrations, encouraging impulse buys and boosting in-store excitement. 2 Offering the right range of price-marked packs (PMPs) is becoming increasingly important as cost- of-living pressures continue. PMPs encourage shoppers to spend by reassuring them that they are not being overcharged and giving the impression that the products are on promotion. They are a great way to deliver value for money while meeting consumers’ need for affordable treats. Source: Lumina Intelligence Retailer Attitudes & Behaviours Study, June 2023 vs June 2024 Source: Lumina Intelligence, Convenience Tracking programme, 52 w/e 18.08.24 Percentage off, e.g. 20% off Multi-buy, e.g. buy two for one, buy 2 for £5 Round pound, e.g. was £2.50, now £2 Buy one get one free Meal deal Clubcard deal/ Loyalty card Clearance/ close to expiry date Bundle deal, e.g. beer & pizza for £10 23.0% 20.5% 14.8% 13.7% 13.2% 12.4% 8.7% 4.2% Type of promotion 41% of convenience shoppers purchase on promotion Why Is Promotional Execution So Important? Page 3 www.planforprofit.co.uk @PlanforProfitRetail @Plan_for_Profit 76% 70% 70% 70% 65% 62% +5ppts vs avg +8ppts vs avg +7ppts vs avg +7ppts vs avg +5ppts vs avg Price-marked packs give shoppers confidence in the price With PMPs shoppers do not blame me for the price I like PMPs because I don’t need to think about what price to set PMPs stand out on the shelf PMPs look like promotions PMPs increase sales -1ppt vs avg