Tesco’s recession busting price cuts have made me distrust the supermarket. Every aisle in the supermarket is covered with three hundred red cards screaming price cut. When every item in your store is permanently on sale, you’re losing the impact that a genuine sale offers.
Secondly, when the majority of sales amount to a laughable one or two percent discount, customers no longer believe in sales. My friends have taken to posting the funniest price cuts on Facebook; 3 cent off a roast chicken, 4 cent off a sack of potatoes.
Finally, selling products at unbelievably low prices undermines the perceived quality of the product, and the store that sells it. The more astute will note that the expiration date on the burger. ( I took this photo on July 20th ). This makes me distrust every yellow sticker I see in the store.
Like all customer communication, sales announcements rely on rarity and quality. If customers question either of those, your communications lose all value.
6 Comments
In the case of Tesco they also now have ‘discount brands’ which strangely you can’t buy anywhere else.
I agree with your comments, but am no longer sure that their customers see it this way. Tesco have gained a rep as low cost without sacrificing peoples perception of ‘quality’ ( in this case proper mass-produced food).
Other than price competition on specific items the offers are almost certainly just noise to the customers - like muzak or background TV. Tesco and the other supermarkets have created their own monster.
Are there any supermarkets that behave differently?
Posted by Ian jones at 7:49 pm on 7 August, 2009.
Hey Ian,
Thanks for your comment. I agree with your point re:customers perception. The Tesco brand is ultimately “low cost” without going the Ryanair route.
In terms of supermarkets that behave differently, I think Marks and Spencers , or Superquinn are quite different (in Ireland at least)
Des
Posted by Des Traynor at 9:53 am on 8 August, 2009.
I agree with the sentiment - if everything is a special offer then nothing is a special offer - but unfortunately I’m all too familiar with that special fridge in tescos where every single item has one of those yellow stickers - and everything is one or very close to the use by date. I can’t remember what signage they have on the fridge but I thought everyone knew what they were getting at that fridge.
Posted by John Braine at 10:47 am on 10 August, 2009.
The yellow stickers are used to reduced product coming to the end of it’s shelf-life. This has been the case in Tesco for many years. Better that we get something for it and the customer gets a (freezable) bargain, than it going in the bin. We’d get a verbal kicking for that too.
The “discount” is a discount versus similar quality product in other supermarkets, not a discount versus that brand as we have it only produced for us.
The main reason for the sea of red price offer tickets is to create the accurate impression that Tesco is a destination shop for price-conscious customers. It seems to work.
Posted by Colin at 2:59 pm on 12 August, 2009.
Hey Colin,
Thanks for replying.
The yellow stickers highlight the price rather than the problem with the product, which is fair enough from a commercial perspective. If it said “Consume today” or something it’d be a bit more clear.
My issue with the sea of red price offers, is that it’s creating the impression that everything is on sale, but realistically, very few things are on actual sale. I don’t consider a 2-5% reduction to be much of a sale.
FWIW I do consider Tescos to be a place for price conscious customers, but I think claiming this on the basis of crap offers will weaken the message significantly.
Des
Posted by Des Traynor at 3:07 pm on 12 August, 2009.
This reminds me of DFS with their year round “Sale now on” campaigns that left you utterly desensitized to any of their promotions. Tesco’s price promotions I’m now just completely blind to. Particularly the infamous two for one offers.
Tesco can be something of a minefield, some products are good value, however there are also quite a few that are quite expensive yet quite low quality. I pick and choose what I buy (without being overly analytical) Usually Tesco will do for staples like bread, potatoes, milk, butter etc.
While at M&S I’d get proper quality chicken and meat at comparable prices to Tesco’s.
Posted by Ed Benton at 5:02 pm on 12 August, 2009.