Member Article

Bargain hunters surprised by good quality and service from discounters

Nearly 90% of shoppers have been surprised by the quality of products on offer from discounted supermarkets compared to similar items from more premium stores, our research at Newton reveals.

In fact, the element of surprise seems to have triggered a desire amongst shoppers to boast about their purchases to friends who don’t frequent discounters. We found that 38% of people have bragged once, or regularly bragged, to acquaintances about their discounted purchases, only to discover their friends had paid double for a similar item at a premium retailer.

But whilst value for money continues to be the biggest driver for people shopping at the likes of Aldi and Lidl (45.9%), consumers still look for good service. Our research found that over two thirds of consumers (67.8%) want the level of service at a discounter to be as good as they’d expect from more mainstream retailers like Tesco and Sainsbury’s.

This is a warning for the big retailers not to expect to beat the discounters purely on price. The initial growth in the popularity of stores like Aldi and Lidl might have been based on lower prices, but as the discounter model matures and more people are tempted away from the big supermarkets, even for just a portion of their shopping, then basic consumer expectations of quality and service need to be met.

But what the discounters also throw into the mix is the element of surprise: unexpected products shoppers don’t find anywhere else, or great value items that have consumers recommending such shops to their friends. To be able to compete the big supermarkets need to focus on areas where they are stronger, such as convenience, innovation in products and service, or a wider range of items.

Our recent report, entitled ‘Beating the Discounters’ recommends that the multiples should consider ‘8 steps to success’ to regain market share from discounters, such as: • 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

Our key findings include: Have you been surprised by the quality of the products from a discounter in comparison with a premium supermarket? • Yes, the quality is about the same - 62.5% • Yes, the quality is better - 27.1% • Total - 89.6% Do you expect a certain level of service at a discounter, like you would expect at a larger retailer? • I expect the same level of service - 67.8% • I expect the service to be better - 13.1% Have you ever bragged about an item you’ve bought from discounter only to discover the person you’ve bragged to paid double for something similar at a big retailer? • Yes, regularly - 19% • Yes, once - 18.6% • Total - 37.6% • 75% have bought an unexpected purchase at a discounter • 62.4% have recommended a discounter to family and friends after making an unexpected purchase there

This was posted in Bdaily's Members' News section by Paul Harvey .