Multi-buy and discount promotions are popular short-lead tactics for many retailers, but what impact do they really have on sales figures?
A study by IRI has shed light on how promotions really impact sales.
The data and analytics provider reported growth of just 0.13% on a promoted category, although it did recognise that reducing prices increased footfall and basket size.
It seems that promotions are not necessarily driving sales growth as much as the industry expects.” — Thomas Hall, Analytics Programme Director at IRI
IRI studied more than 85,000 promotions in the UK, with more than half of these having a negative impact on sales.. . .
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