Brand View has been tracking the UK Consumer Durables market for the past two years. This Insight takes a look into price and promotional activity across the Small Domestic Appliances market (SDA), including Kitchen Appliances and Personal Care.
The price index below shows the relative price position of each retailer in comparison to the Home Retail Group. The index is based on like-for-like products available in the Home Retail Group and in each of the other retailers:
- The index shows that for the same products stocked in Argos or Homebase, every other retailer indexes below them. Meaning on like-for-like products, Asda, John Lewis, Amazon, Currys and Tesco are less expensive.
- Tesco, either through Tesco Direct or Tesco Grocery, maintains a significantly lower price position, between 15 per cent and 24 per cent cheaper than Argos.
- Perhaps most surprisingly, John Lewis is at a lower price position than Argos on like-for-like products, with a 12 per cent difference in the price index.
Retailer Promotional Mix
Looking at the same retailers, Brand View can identify the number of products on promotion over a set period of time and the average level of discount applied, providing visibility on each retailer’s promotional strategy.
The chart below shows the percentage of each retailer’s range in SDA that has been on promotion:
- A widely varying level of promotional activity is highlighted, with Amazon running price reductions on over four out of five products. The majority of these are where Amazon is selling items significantly below RRP.
- Tesco has the second biggest range on deal, with close to 60 per cent of its range being on promotion; however it has a much smaller SDA range than the other retailers with the majority of its lines sold through Tesco Direct.
- The Home Retail Group and the Grocer Multiples are more specific in their promotional activity within the SDA market, with around 15 – 25 per cent of their ranges having been on promotion.
- John Lewis has offered the lowest percentage of any retailer’s range on promotion, with only 6 per cent of products having been offered with a promotion.
Depth of Discount
We have seen the proportion of range each retailer promotes within Small Domestic Appliances, but what about the value of these promotions?
There are similar levels of discounts applied across each of the retailers, but there are some stand-out points to note:
- Tesco and Asda only promote a limited number of SKUs but the majority of their range is on offer. When they do promote they offer the highest discounts, with on average, around 30 per cent discount applied.
- John Lewis is generally competitive in its base price, but it does relatively few promotions and when it does promote, the discounts are smaller than that of the other retailers.
- Although Amazon had the highest proportion of its range on promotion, they conversely offer the lowest level of discount. This is driven by its types of promotions which usually take the form of advertising its price reduction off RRP. As such the discount offered is relatively low.
Promotions by Category
We have taken some of the largest categories across Kitchen and Personal Care and looked at the promotional activity for the last 90 days:
- The Personal Care categories are grouped relatively closely together, with Shavers, Epilators, Clippers and Hair Dryers all being promoted for a shorter period of time than the market average. These personal care categories look to offer deeper discounts than other SDA categories.
- Kettles and Toasters have had the most promotions but offer lower levels of discount.
- Hot Drinks Makers such as Coffee Machines and Tea Makers have a very different promotional strategy than the rest of Kitchen, with a far longer average length of promotion, but with low levels of discount.
- Grills, although a relatively small category, offer both higher discounts and longer periods when on promotion.