IRUK 500

Update 4: Product and Merchandising Tracker March 2017

Tesco remained the top performing retailer for Merchandising Deployment in March, according to the Product and Merchandising Tracker. Ocado showed improvement, moving up a rank since September 2016. The fragrance ranges of Boots and Superdrug are, again, the top two discounters covered in the Tracker, which monitors the merchandising deployment and discount strategies of 28 Elite and Leading Top500 retailers across six product categories.

Boots’ continuing position as the top discounter, with the average of 60%, a whole 20% deeper than any other retailer covered by the data and almost 25% deeper than its own cuts at the time of the last update, during September 2016. This stands in stark contrast to the norm, as the average cut percentage remained within one percentage point from its September 2016 level.

The grocers, despite their enormous product ranges, continue to perform well in Merchandising, which measures the percentage of range with reviews, descriptions, product videos, and images; and the average number of images per product.

Table 1: Merchandising Deployment Leaders – March 2017

Retailer  Sector Position change: September 2016 to March 2017
1 Tesco [IRDX RTSC] Grocery
2 Ocado [IRDX ROCA] Grocery ↑ 1
3 Debenham’s [IRDX RDEB] Fragrance ↓ 1
4 Boots [IRDX RBOO] Fragrance
5 Sainsbury’s [IRDX RSBR] Grocery
Taking account of the percentage of range with reviews, descriptions, product videos, and images; and the average number of images per product.

 Table 2: Moving Up the Ranks in Merchandising Deployment – March 2017

Retailer  Sector Position change: September 2016 to March 2017
1 Morrisons [IRDX RMOR] Grocery ↑ 4
2 Richer Sounds [IRDX RRIC] Electrical ↑ 3
3 Boots [IRDX RBOO] Fragrance ↑ 2
4 Sainsbury’s [IRDX RSBR] Grocery ↑ 2
5 Ao.com [IRDX RAOC] Appliances, Electrical ↑ 2

Superdrug occupies second place on the biggest discounters table through its distinct strategy of including promotions on a large proportion of its products, with 96.8% on offer in during the period surveyed, with the average at 27%.

Table 3: The Biggest Discounters – March 2017

Retailer  Sector Position change: September 2016 to March 2017
1 Boots [IRDX RBOO] Fragrance
2 Superdrug [IRDX ROCA] Fragrance
3 Debenham’s [IRDX RDEB] Fragrance
4 Early Learning Centre [IRDX RBOO] Toys ↑ 14
5 Mothercare [IRDX RSBR] Toys ↑ 1
Taking account of the percentage of products on promotion and the average depth of cut.

Retailers in the Fragrance and Toys sectors rank prominently among the biggest discounters in March. Nine of the top 10 discounters fall within these two sectors. The percentage of promotions to products in the Grocery sector, in particular, has fallen almost uniformly since August 2016, with the sole exception of Asda. This trend is, according to Chris Elliott, insight analyst at Brand View, likely a result of food inflation due to rising import costs triggered by the EU referendum. “Rising import costs since have hit household staples such as butter and vegetables leading to grocery inflation of 1.4 percent in the 12 weeks to 26 February 2017”, he said. This inflation has, in particular, hit household staples. Asda stands out among the grocers for increasing promotions during this period when most of its competitors are decreasing promotions if not raising prices.

About the Product and Merchandising Tracker

InternetRetailing partners with Brand View to analyse the approach to discounting and product display adopted by the UK’s top retailers across six categories of retail. The tracker covers products in the Appliances, DIY, Electrical, Fragrance, Grocery, and Toys sectors. The index is updated periodically.

Mentioned in this piece…

Tesco

Tesco

IRDX: RTSC

Tesco is the largest British supermarket chain. Tesco has a comprehensive multichannel offering, including mobile and tablet websites, click-and-collect options and home delivery. (more…)

Ocado

Ocado

IRDX: ROCA

Ocado is an online supermarket and a vendor of supermarket ecommerce software and robotics.
(more…)

Debenhams

Debenhams

IRDX: RDEB

Debenhams is a multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. (more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Sainsbury’s

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)

Morrisons

Morrisons

IRDX: RMOR

Morrisons is one of the ‘big four’ British supermarket chains with headquartered in Bradford, West Yorkshire, England. Founded in 1899 by William Morrison, the company now has over 400 stores in the UK. (more…)

Richer Sounds

Richer Sounds

IRDX: RRIC

Founded in 1978, Richer Sounds is a British home entertainment retailer that operates online and through a chain of 53 stores distributed across the United Kingdom. The business is 100% owned by Julian Richer, the founder and managing director of the company.
Products include hi-fi, home cinema and TV equipment. (more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Sainsbury’s

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)

AO.com

AO.com

IRDX: RAOC

AO.com (formerly Appliances Online) was the first website of parent group DRL Limited who also sell kitchen appliances through partnerships with Boots, Next, House of Fraser, B&Q and Iceland. In 2009 ao.com acquired distribution company Expert Logistics enabling it to deliver its own products. (more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Ocado

Ocado

IRDX: ROCA

Ocado is an online supermarket and a vendor of supermarket ecommerce software and robotics.
(more…)

Debenhams

Debenhams

IRDX: RDEB

Debenhams is a multinational retailer operating under a department store format in the United Kingdom and Ireland with franchise stores in other countries. (more…)

Boots

Boots

IRDX: RBOO

Boots is a pharmacy chain and multichannel retailer with outlets on most high streets throughout the UK and Ireland. (more…)

Sainsbury’s

Sainsbury’s

IRDX: RSBR

Sainsbury’s is a British supermarket chain with a significant share of the UK market. (more…)