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Did Father’s Day promotions give shoppers a better deal?

fathers_day_present

It was predicted the amount spent on Father’s Day, which this year fell on 21 June, would increase by £26 million, to reach £684 million (Conlumino).

Despite the rise in predicted sales, which were partly attributed to consumer confidence reaching a nine year high, shoppers spent more on Mother’s Day with sales of £1.3 billion.

Retailers segmented Father’s Day gifts this year, aligning them to the recipient’s interests. Gifts were separated into three categories: traditional, technology and sports gifts – as seen in an ad on the John Lewis website.

father's day john lewisJohn Lewis website 21 June 2015

 

Sports Gifts

Fitness trackers and sports GPS: Average Shelf Price

Retailers heavily featured fitness trackers and sports GPS devices in the sports and technology gift categories this Father’s Day.

Both Argos and Very began promotions a month in advance, on fitness trackers and sports GPS equipment, dropping the average shelf price of activity trackers by 2.6 and 4.9 percent respectively.

Very was the only retailer analysed to make any significant change in prices for Father’s Day in this category; its average shelf price dropped an additional 3.1 percent on 13 June, due to 18 promotions on Garmin fitness trackers.

Despite advertising fitness trackers as a potential Fathers Day gift and reducing the price of four Fitbit products, John Lewis’ average shelf price actually increased – this is due to a price increase on the Garmin Forerunner 220.

Since Father’s Day, John Lewis and Argos have extended promotions on activity trackers as a part of clearance sales.

 

average shelf price fitness trackers

 

Fitness trackers and sports GPS: Pricing

A week before Father’s Day, Argos listed more than double the number of fitness trackers and sport GPS products than Very, and more than quadruple that of John Lewis.

All three retailers had the greatest proportion of their range in the £75 to £99.99 price bracket.

John Lewis had the greatest proportion of its range, 7 out of 39 SKUs, priced below £25. However, the majority of these products were accessories, such as spare wristbands.

pricing fitness trakcers

 

Fitness trackers and sports GPS: Price Index

Using Brand View Price Index, we have benchmarked Argos’ shelf price of fitness trackers from brands Fitbit, Jawbone and Polar, to the prices of John Lewis and Very.

Argos was cheaper than both John Lewis and Very for Jawbone fitness trackers by 11.9 and 15.4 percent respectively. Argos was also an average of 5.1 percent cheaper on Fitbit products compared to Very.

However, Argos was more expensive than John Lewis on both Fitbit and Polar products. The greatest difference was on Polar fitness trackers where John Lewis was on average ten percent cheaper.

In general, John Lewis was competitively priced across the category, despite the fact it did not significantly drop prices in the seven weeks before Father’s Day.

price index fitness trackers

 

Male grooming appliances

Male grooming appliances and shavers were also promoted by retailers as potential Fathers Day gift.

Brand View has reviewed the average depth of discount of Braun, Panasonic, Philips and Remington male grooming appliances and shavers the week before Father’s Day.

John Lewis did not have any male grooming appliances or shavers on promotion on 14 June 2015, despite highlighting some products as Father’s Day gifts.

Argos offered the greatest average depth of cut on Braun appliances at 40.8 percent – the retailer offered half price promotions on seven Braun products. The retailer also had eight half price promotions on Philips products, but this was offset by smaller reductions on lower cost items.

Very promoted Panasonic products the most with a depth of cut of 40.3 percent – 16.6 percent more than Argos. Of the seven Panasonic products promoted, four were on half price promotions.

 

depth cut male grooming

 

Male grooming appliances: Price Index

Using Brand View Price Index to benchmark prices in all three retailers, Panasonic items have been substituted for Babyliss in the analysis, as there are no comparable Panasonic products.

Argos was an average of 34.1 and 25.9 percent cheaper than both John Lewis and Very respectively on Remington products. This is due to Argos offering deeper discounts on comparable Remington products compared to the other retailers.

John Lewis were on average cheaper than Argos on Babyliss, Braun and Philips products despite not running any promotions.

male grooming price index

 

Conclusion

While John Lewis did not promote as heavily as Argos and Very, it still had very competitive prices for Father’s Day gifts – it was on average cheaper than Argos on every brand highlighted, other than Remington.

Very promoted the most products of the three retailers analysed, and yet it was the most expensive on five of the seven brands analysed. It’s base prices were significantly higher than Argos and John Lewis; in order to become more competitive Very would have to increase promotions even further.

Ultimately, shoppers had to work quite hard to get the best deal. A heavy discount may lead the shopper to believe they are getting a good deal, when in fact they could have purchased the item cheaper in another retailer with a smaller discount.

This affirms the importance of price promise schemes, such as the John Lewis price match, which can simplify the shopping experience for the customer significantly.


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