As the house moving and re-decorating season begins to wind down as Christmas approaches, Brand View takes a look at the price and promotional movements over the past few months in one of the key markets affected by these trends, Paint.
Whilst prices have remained relatively static over the past few months, with an overall increase of 0.4 per cent since July, the promotional activity below shows just how seasonal the market is:
The most striking peaks in promotional activity occur around Bank Holiday periods including Easter and May Bank Holidays. The promotions then tend to drop off over summer, and then spike again around the August Bank Holiday.
Looking more closely at the retailers’ activity, all of the major operators in this market promote heavily in spring and early summer time, but it is only Wickes and B&Q that continue a significant level of promotions throughout the summer, before the rest of the market increase activity at the end of August.
Paint Promotions by Size of Pot
So we’ve seen some differences between retailers in promotional strategy, but are different stores promoting different sizes of pot to a greater or lesser extent?
There are some key differences in the way in which each retailer promotes the Paint category by size. Asda Direct, for example, heavily promotes the category, with over nine out of 10 products having been promoted since July. In contrast, Homebase has run around three out of 10 products in Paint on promotion. However, they are strongly promoting the five litre size.
Wilkinson and B&Q have operated a relatively consistent level of promotions across sizes, and all retailers with the exception of Wickes and Homebase strongly promoting sizes under 2.5 litres. This includes tester pots, one litre ‘feature wall’ tins and so on. Tesco Direct meanwhile, promotes little of its 2.5 litre range, instead focusing activity on the extremes of the market in terms of size.
When retailers do promote Paint the main mechanic used is Multibuy:
Clearly, Multibuys are key for this market in order for consumers to decorate in a cost-efficient way. Over half of promotions run over the last few months have been ‘buy three for the price of two’, which on average equates to approximately a 30 per cent saving when buying this volume. This mechanic, and the ‘Buy one get second half price’, is solely driven by B&Q and Homebase.
Only one in five promotions in this market offer a discount off the price of the product, but this has been the only mechanic used since July by Tesco Direct, Asda Direct and Wickes.
Range Position by Retailer
Paint is obviously a widely varying market, with different finishes, sizes and qualities available. Here, we take a look at the presence of each retailer by price band, to understand how each retailer positions its range.
With the largest ranges available in the UK, it comes as no surprise that B&Q and Homebase represent the bulk of the Paint range available in each price band. However, the presence of B&Q in the upper price bands drops significantly after the £47.99 mark, with Homebase dominating the market above this price. This is due to the high-end Farrow & Ball range stocked exclusively within Homebase.
Wickes operates a relatively broad range of pricing in the market, but Wilkinson concentrates its range on the value end, with little presence past the £23.99 price threshold. This puts it in competition with Asda Direct, who, given the size of its range in comparison to the sheds, holds a strong presence in the £8.00 – £11.99 price band. This is due to its pricing of the ‘Your Home’ paint range, with many 2.5 litre tins priced at £10.