B&Q overhauls pricing strategy
B&Q is overhauling its pricing strategy by replacing the complex promotional structure with a simple system that it claims “removes the need for shopping around”.
The DIY retailer will also move away from the cumulative price promotions it has previously offered, such as 50% off with a further 15% off, instead it is emphasising its price promise to beat competitors’ discounts in a bid to give consumers more confidence in the prices they will pay at B&Q.
Katherine Paterson, B&Q’s marketing director, says: “The market is so complicated in terms of price and the pressure to calculate what something costs, but consumers need confidence in the price. We want it to be as simple and clear as possible.”
“We want to tell customers that they can trust the fact that we will beat any comparable price so we’re removing the need to shop around,” she adds.
She adds that a more simple pricing strategy will mean customers can spend more time in store looking at products and having “good conversations” with staff to make the right purchase decision.
Paterson, who joined in February, says next year B&Q’s strategy focuses on three areas; simple transparent prices, “fantastic” new ranges and expanding its help and advice programme.
The chain plans to introduce a host of new product ranges in the coming year as part of owner Kingfisher’s ten-year strategy to build its own label offering.
B&Q launched its longest ever winter sale earlier this week, promising £60m worth of price cuts on kitchens and bathrooms.
The retailer plans to ramp up digital activity to support the winter sale event and drive sales after Christmas, and is investing its biggest ever spend on digital (£1.75m) as part of a £5.5m marketing campaign.
Earlier this year, Jo Kenrick, marketing director at rival Homebase said its growth strategy was pegged on female home improvement shoppers rather than male building shoppers.