Price isn't enough for the supermarket shopper

A recent YouGov poll has highlighted the cynicism with which shoppers view the supermarket price deals.
Only 18% agreed with the statement "I believe supermarkets' claims about cutting prices", with only 2% agreeing strongly. This isn't surprising when consumers are seeing continuing profit increases from the big four and further evidence from the Grocer price index backing this stance by highlighting the stagnant nature of base prices across a range of household products.

It does feel like they had it coming. While You Gov talk about "...one player needing to strike decisively and make consumers a clearly differentiated price/value offer" I think it actually highlights the fact that low prices is not enough. With the exception of Sainsbury's "Live well for less", the major supermarkets are reassuring their customers of their competitive prices but that's all the messaging appears to be doing. Reassuring and hopefully defending share against each other and the big discounters like Lidl and Netto who benefited in the last recession.

Customers expect competitive prices and now have the online tools to check that they're getting just that. Every time a customer does their shop in store they're hit with a barrage of price drops, promises and cuts. But price on its own is clearly not compelling enough to steal share. Partly due to the mistrust over just how much can be saved - after all, fuel prices now mean that a slightly longer car journey will negate any saving made at the new store - and partly because the price promise does not differentiate one store from another. The 'why should i bother changing?' needs a better response than simply 'because we're even cheaper'. Better customer service, fresher produce, more extensive ranges or added value on the shopping experience would all be good places to start.