More shoppers, less loyalty for Asda as it seeks market growth
Asda’s “Roll Back the Prices” campaign is helping the supermarket chain attract new shoppers for its toiletries products while Boots Advantage card is encouraging its customers to spend more, according to research from Taylor Nelson Sofres Superpanel.
Asda has added 2.2 million new toiletry shoppers to its already existing 13.9 million, but its Roll Back offers and EDLP (every day low pricing) strategy has contributed to a decline in spend and loyalty. The research company’s consumer purchasing panel of 10,000 households, called Superpanel, provided the data.
The research covers the 52 weeks up to January.
A spokeswoman for Superpanel says: “Asda has been attracting new customers, but buyers are spending less. Boots buyers are spending more – especially on premium-priced products such as skincare and haircare. They are also spending to capitalise on their Advantage card offer.
“What the Asda data shows is that in the long-term EDLP doesn’t help customer loyalty or spending.”
On average, Boots shoppers spend &£38.12 and Asda shoppers &£24.26 every year on toiletries, according to the research.
It also reveals that with almost a 23.4 per cent value share of the total toiletry market, Boots has maintained its lead in this sector. Asda, on the other hand, holds about 9.8 per cent of the market.
Despite Asda’s attempts to make in-roads into toiletries, Boots has seen shoppers increase spend on toiletries by six per cent. But the chain has also seen the number of toiletries buyers drop by 750,000.
