14 Day Free Evaluation

Enter your details below and a member of our Client Service team will set up an evaluation specific to your markets and categories.


Round Pound Promotions

By admin

Following the recent news that Asda will be ramping-up its ‘round pound’ deals in the lead up to Christmas, this Insight takes a look into promotions at three UK supermarkets where the promotional offer was at a round pound price point.

Brand View investigated all Grocery items (including Chilled and Frozen) at Asda, Tesco and Sainsbury’s with round pound promotions up to £10 that have taken place in the last three months.

As part of this analysis Brand View has reviewed the number of promotions and trends over time by retailer, depth of cut by price point, and how the promotional mix varies across the more frequent promotional offers (£1, £2 and £3 deals).

Total Number of Round Pound Promotions

Looking at the total number of round pound deals in all three supermarkets, Tesco has by far the largest number of products on this type of promotion.

When Brand View conducted round pound analysis previously (back in 2011), Asda was the leader in this activity with Tesco following closely. Since this time both Tesco and Sainsbury’s have overtaken Asda on these types of promotions. This may explain Asda’s recent announcement to increase round pound promotions over the coming months.


Length of Promotion

Taking a 90-day period and comparing Asda and Tesco, this chart looks at the number of products sold at round pound price points over the last three months (week-on-week) and shows the trend over that time.

So, whilst Tesco has offered more promotions (as shown in the first chart over the 90-day period) Asda has changed its promotional strategy more recently and with its length of promotions generally lasting longer, has moved closer to the number of promotions in Tesco in recent weeks.

There was a period of around four weeks where the number of round pound promotions at Asda was significantly less, and, as such, was the reason for the difference in the first chart.


Depth of Cut

In addition to tracking the number of promotions, Brand View has also looked to see which retailer is offering the greatest discount on round pound promotions.

This chart looks at the percentage of discount offered for each retailer at each promotional price point from £1 to £10.

Over the last three months we have seen that when promotions have taken place, Tesco has offered the deepest discount and Asda the shallowest.

Interestingly, as you move to promotional offers over £7 the level of discount offered by Asda from their normal shelf price is lower (nearer 10 per cent).

Across all stores retailers offer a greater discount on £1 deals than higher levels of round pound deal value.

BVW_WEB_Round_Pound_Graph_2_09-08-13 (1)

Duration of Promotion and Depth of Cut

It is interesting to see that all three retailers operate a similar approach in terms of depth of cut and promotional periods on the most frequent promotional types (£1, £2 and £3 offers). These offers account for 73 per cent of all round pound promotions.

  • £1 round pound deals have the greatest discount, at around 30-35 per cent, but are on offer for shorter periods of time (e.g. 22 days)
  • £2 deals offer shallower discounts, at around 26 per cent, and are on promotion for a longer period of time (e.g. 29 days).
  • Interestingly, Asda move further away from its competitors at this price point with much longer promotions (around 35 days), fitting with their overall EDLP strategy.
  • £3 offers see even shallower discounts, at around 22 per cent, and longer periods on promotion (e.g. 32 days). This is again influenced by Asda with significantly longer promotions than the competition (average of 41 days).

It will be interesting to see how these trends vary over the coming months and during the lead up to Christmas. Will Asda’s push to create more round pound promotions see it regain its 2011 position as the leader in this activity, or will Tesco remain on top?

Brand View will continue to track round pound promotions and will compile a report in 2014 to look into the results of the final five months of 2013.


This analysis compares the number of promotions, depth of cut and length of promotion across Tesco, Asda and Sainsbury’s. The only promotions featured in this analysis are promotions where the promotional offer was for a round pound sum. For example, a ‘was £1.28, now £1’ offer would feature as a £1 round pound promotion. The analysis was conducted on all promotions which started or were taking place between 7th May and 6th August 2013.

Actionable Intelligence

Brand View is the leading global provider of price, promotion, product content and online product positioning analytics.