He criticizes the avalanche of stocks flooding retail chains: lots of noise, little value

Discounter “Iki”, “Maxima’s joke instead of the price”, “Rimi’s” promise of a good price, “Super” offers from “Lidl” or “Norfa’s Monday vegetable sales” – this These are just some of the promotions offered and actively promoted to buyer networks recently.

However, Arūnas Vizickas, head of the price analysis portal “Pricer”, notes that consumers receive little tangible benefit from these promotions. Retail chains don’t think about customers, they suddenly price a product cheaper than their competitors and start spreading the message that they have the cheapest.

Not for consumers, but for advertising

“The reaction of retail chains to each other and to the actions of competitors has intensified. This can be felt in particular between Maxima, Lidl and occasionally Iki. If, for example, someone announces that “he is offering a promotion on bananas, you should expect a response with the same price or ten cents less in a few days”, explains A. Vizickas.

However, according to the director of “Pricer”, the promotions of retail chains are not focused on consumers. If, for example, a person wants to buy products – bread, butter, sausages – for breakfast with a promotion, then it is very likely that he will have to purchase each of these products in a store of a retail chain different detail.

In addition, A. Vizickas notes that, according to “Pricer”, the level of promotional prices has increased compared to last year, especially in the meat category.

“For example, if previously 0.5 kg of chicken wings cost 0.99 euros during promotions, they are now 1.19 euros. If a pork tenderloin cost 2.99 euros during a good promotion, today it costs 3.49 euros,” calculates the interviewer.

When asked why, he believes that prices in Lithuania are often based not on the costs incurred by businesses, but on their needs: “If a market closed for someone, sales decreased, then the easiest way to compensate is to increase prices. We have seen the latest wave in the dairy category, even though the purchase price of milk has fallen.

A. Vizickas predicts that buyers of various titles will probably get more this year, but these will not be used to increase value for consumers, but for “brainwashing.”

“For example, at the end of last year the Lidl chain was forming baskets and trying to present that it was the cheapest on the market. The whole campaign aimed to change the perception of Lidl prices. Was Is this useful for users? No, because these were grouped shopping carts, trying to find items that other retail chains were selling at regular price at the time.

We will probably have more similar promotional activities. The question is whether we will get promotions that will benefit consumers,” explains the Pricer manager.

Competition is tougher at the start of the year

Dainius Dundulis, owner of the “Norfos” group of companies, disagrees that the price level set by traders during promotions is higher than last year. He notes that statistics from the National Data Agency show that food prices have increased by only 1 percent this year.

“Plus one percent is nothing, just as minus one is nothing. That the prices of goods fluctuate, yes, I can confirm this. However, “Pricer” chooses products that have become more expensive and ignores the fact that there are also some that have become less expensive,” criticizes D. Dundulis.

According to him, stock traders are constantly in competition, but the businessman recognizes that this competition has currently intensified. It happens at the beginning of every year.

Dainius Dundulis

“Usually the trend is that it starts more or less around mid-January and continues until the beginning of April. Regardless, the promotions take place constantly, but at present, for purposes marketing, they are communicated more to the public”, explains the owner of “Norfos”.

Indrė Trakimaitė-Šeškuvienė, Head of the Communication and Corporate Relations Department of the “Maxima” Business Network Delphi indicates that consumption always slows down during the first months of the year, which is why offering discounts to customers at this time is a common business practice around the world.

“It is therefore not surprising that the competitive environment seems hotter at the moment,” admits I. Trakimaitė-Šeškuvienė.

According to her, the retail chain offers promotions that are useful to consumers because “they know their customers and know what is important to them.”

“Data shows that even 89 percent Approximately 400,000 customers who shop in Maximos stores every day add discounted items to their cart. Every week in our shopping network, buyers can find up to several hundred of product types with various discounts or other special offers and save considerably,” explains the Maximos representative.

Indre Trakimaïte

According to her, in the last year alone, shoppers who purchased the products covered by the promotions spent a total of 4.4 million. euros less than they would have spent to buy the same products at usual prices.

“We are and want to remain a retail chain that guarantees the best prices in Lithuania, therefore this year we will continue our work – both by reducing the usual prices of goods and inviting them to use extremely attractive so that everyday customers can put together a basket at a good price for everyone,” he says. I. Trakimaitė-Šeškuviene.

Gintarė Kitovė, representative of the commercial network “Iki” Delphi The comment provided indicates that the active aspiration of retail chains to attract customers to the market is still felt and competition remains constantly intense.

“Maybe it’s getting more attention lately because we’re taking more and more new steps to create an even better shopping experience, and they’re being widely noticed.” Not only do we announce weekly discounts of about 5,000 goods, but we also make innovative decisions regarding the loyalty program, we have had unprecedented initiatives, like all products in the cart for 1 cent, now we bring together the “IKI customer table”, etc., comments G. Kitovė.

    Gintare Kitovė

This retail chain also assures that it always makes “efforts for customers, which is why it is actively looking for ways to reduce their costs”.

“In addition, we take a complex approach to attracting customers and retaining them. Attractive prices are of course a key element, but we are also considering changes that make everyday life easier for our customers,” says the “Iki” representative.

Stocks are chased by the majority

“Lidl” thus assures that the research carried out by the shopping center shows that customers are looking for promotions and that loyalty programs are the method most used by Lithuanian residents who want to reduce their food expenses.

Lina Skersytė is the PR representative of this retail chain Delphi states that at the beginning of this year, a representative study conducted by the company “Norstat” showed that buyers are actively interested in promotions, about which they are looking for information in applications of smart stores.

“Exactly the vast majority of respondents – up to 70 percent. – to spend less, they shop through loyalty programs. Taking into account trends and customer needs, we offer various offers through the Lidl Plus mobile application, which allows you to save by using offers. We are constantly improving the application by adding various functions to meet customer needs even more precisely,” says L. Skersytė.

Lina Skersyte

According to her, “Lidl” notices that buyer behavior has recently changed: residents are becoming more rational buyers and tend to pay less for well-known brands and thus save money if they can buy the same quality at a lower price.

Eglė Krasauskienė, head of public relations and corporate responsibility of the company “Rimi Lietuva”, also claims that consumers are price sensitive and are constantly looking for ways to save.

Church Krasauskienė

“We also help to do this. Every week, Rimi offers its customers about 3,000 different promotions. We are constantly looking for various solutions that would not only be attractive to buyers, but also provide real savings” , – Delphi says E. Krasauskienė.

According to her, over the past year, “Rimi Lietuva” has invested almost 800,000 euros in price reductions. It is for this reason that almost 4,000 units have been sold in Rimi stores throughout Lithuania. With the prices of different products, many products have become cheaper by almost a third.

“Nearly 500 products in popular categories such as dried fruits, cereal products, spices, cheeses and yogurts have had their prices reduced by 25%. and more, so that buyers can buy them cheaper,” assures the Rimi representative.

According to her, during the “Promise of a good price” campaign, launched in early January, the retail network wants to show customers visiting stores that everyone, without exception, will find a relevant offer for themselves.

Source: The Delfi

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