Promotions put supermarkets on a par with the ' atacarejos '

The products on offer have gained share in total retail food sales over 2017, even in a scenario of gradual resumption of consumption. In some categories, like beers and disposable diapers, discounted items accounted for more than 40% of the volume of units sold. "In all formats the momentary price reductions (promotions) increased from one year to the next," says retail consultant from Nielsen, Ana Szasz. The expert's assertion is based on a consultancy study, reported in the annual Convention of the Brazilian Association of Supermarkets (Open), which evaluated the evolution of the participation of discounts on sales volume of four channels (supermarkets, hypermarkets, neighborhood and pharmacies). According to the survey, all formats presented growth of importance of promotions in 2017, compared to the previous year, but more intensely in supermarkets and neighbourhood shops. In the case of supermarkets, for example, everything that was consumed last year almost half (41.4%) was spent on items that were on sale. In 2016, the share was 35.1%. The increasing relevance of discounted products took the two tips: on one side there was growth of consumer demand, which followed in search of low prices, and on the other an expansion of the offer of promotions by retailers. The idea of supermarkets was attracting the audience and increase sales, at a time when consumption was beginning to show signs of improvement. Apparently the strategy worked. The Nielsen study shows that in 72.1% of the categories examined, price reductions helped boost sales. The case of the Rio de Janeiro World supermarket network illustrates the situation. According to the network's commercial Director, Sergio Leite, the company adopted, since the beginning of the crisis, a strategy to increase promotions, with focus on the most expensive categories. The movement has yielded good results, according to the businessman, and was critical to sustain growth. With the increase of supply on the part of the network and consumer demand for discounts, the participation of the items on sale in the World billing has grown considerably in recent years. "More and more promotional sales share increases," he says. The Executive's estimate is that participation has gone from 25% of the company's revenue in 2014, before the economic recession, to 35% this year. Another study presented at the event of the Open proves the increasing relevance of Brazilian trade sales promotions. Calculated by the consultancy Kantar Wordpanel, research shows that sales of discounted items, representing 11% of retail revenues as a whole, in 2015, respond by 12% in 2016, and by 15% at the end of 2017. Competition for the Director of Kantar, Christiane Pereira, the importance of promotions grew last year because consumers followed seeking save on your purchases, which also favored formats such as atacarejo. The trend, in the view of the consultant from Nielsen, Ana Szasz, is that the habits acquired by Brazilians during crisis remain even after the economic recovery. "In 2018, the promotions should not lose relevance. The Brazilians have acquired new habits with the recession and it will not disappear from one day to the next, "he says. According to a survey released by Euromonitor consultancy this week, atacarejo participation in retail rose, between 2016 and 2017, from 3.7% to 5% of total sales. Last year, the segment moved R $48.4 billion in Brazil. Facing this challenge, Ana Szasz, alert to the need to make a more assertive management retail promotions, since often the offerings don't end up generating incremental sales, and saw a ' shot in the foot '. "The deals have to be strategic," she concludes.