Manufacturers explained where discounts come from
The share of food sales by promotions has increased in retail chains, although the percentage of discounts on products themselves have decreased. NielsenIQ came to this conclusion as a result of a study of the Russian consumer market. The discount in sales for promotions in the first quarter of 2022 averaged 22%, and over the same period of this year it decreased to 19%.
The results of the study show that the categories of goods sold at a discount are also changing. A year ago, the leaders in this respect were chocolate bars. According to promo, in monetary terms, they occupied 63%, and now vermouth has suddenly come to the fore. He has this figure of 62%.
Moreover, chocolate, cocoa, drinking yoghurts, cottage cheese desserts and children's cookies have left the list of discount leaders altogether, as if they never existed. The “holy place” is now occupied by mayonnaise, pasta, sweet pastries and frozen pizza.
— A significant change in the categories of food for promotions is associated with a decrease in prices for their production, — says Dmitry Vostrikov, executive director of the Rusprodsoyuz association. – The current top-selling products contain a significant amount of flour and vegetable oil, the prices of which have dropped significantly over the past year.
This price reduction reaches the buyer through the frequency of promotions. Well, the decrease in the size of the discount reflects the low profitability of the categories of goods that replaced last year's promo leaders.
Financial analyst, Ph.D. in Economics Mikhail Belyaev, commenting on the results of the study, emphasizes that trade needs to sell goods. “We are already accustomed to discounts, they can be made not so radical — to immediately by 40, 50, 60%. But on the other hand, to cover a wide group of goods with them, to make the action more massive,” the expert says.
Promotions in our country became widespread when it became clear that the growth in the income of Russians due to high inflation did not keep pace with retail prices in stores. And discounts support the population well, they can be quite significant for food products.
The departure of some foreign manufacturers from our market after the start of the SVO provoked rumors about the abolition of the discount on foodstuffs. This was also stated by Russian companies losing profits on the volatility of the ruble last year. But, according to the authors of the study, the discount system, although with some changes, still survived.
Which is not surprising: given the rise in inflation over the past year and the fall in real incomes of the population, a rare family does not take advantage of the opportunity to buy goods at reduced prices. If there were no discounts on products, many people would have gone around the world long ago.
Take potatoes, our second bread. Domestic tubers in supermarkets, according to the action, are sold at 16-19 rubles per kilogram. Of course, the quality of the goods, to put it mildly, leaves much to be desired … You need to choose well-preserved root crops (which is not surprising — the end of May!), But the loaders do not have time to pour the potatoes on the counter, they are immediately swept away. And nearby are young Egyptian tubers, not on sale: 52-56 rubles. Four times more expensive — feel the difference!
Coffee in beans 800 grams costs 900-1200 rubles for the promotion, without discounts — 1800-2000 rubles. Pork is sold at a discount by 30% cheaper, a package of milk is 65-80 rubles, whoever is ready to pay without discounts, let him lay out 110 rubles … But why pay more if there is exactly the same milk?!
— I buy products only with discounts, — an elderly customer admits. — Yes, everyone comes for discounts. They do not come every day and not for all products, but if you go to supermarkets more often, you will definitely buy what you need — and at reduced prices.
— Maybe discounts are set for those goods that are worse? I ask her.
“Maybe so,” my interlocutor does not argue. “But I have never come across an expired or any questionable product. Trade is well organized. Two days ago, a text message came from the trading network: discounts on butter. I bought two packages of 135 rubles, but in general they are 190 …
This begs a natural question: who is so kind that he sells us, say, a pork neck not at 450 rubles per kilogram, but at 350? It is hard to believe that for the sake of you and me, trading is going to direct losses, arranging discounts, cashbacks and other promotions to attract customers. No, of course, the discount system doesn't work like that at all.
— I sell my crop of vegetables through retail chains, sign a contract with them, — one large agricultural producer told us. — I have large volumes, networks immediately set a condition. They will accept all my goods for sale, but they will buy 30% not at market value, but 40% cheaper. Since these are social products and these volumes will go at reduced prices. This practice applies to all major commodity producers. We are forced to agree, although we are suffering heavy losses. After all, we have thousands of tons of products, where to put it?..