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BACK TO SCHOOL promotions - a Silo Analytics report

BACK TO SCHOOL promotions - a Silo Analytics report


Issued by Jessica De Bufanos, Head Analyst at Silo Analytics - Feb 21st 2017, 16:40

It pays to be a clever shopper

So, Christmas and New Year is over and bank balances appear somewhat sad. The bad news: not only is January one of the longest months to endure, we also have the looming expense of preparing our children for their academic year ahead.

The good news, however, is that most retailers are embracing the BACK TO SCHOOL season through competitive promotional pricing on stationery lines and are starting as early as the first week of December.

Silo Analytics reports Makro was the first South African retailer to break with BACK TO SCHOOL promotions in the first week of December on 240 stationery lines. Pick n Pay, Spar, Game and Cash & Carry stores quickly followed suit to promote BACK TO SCHOOL themed promotions in the month of December. By January the number of participating retailers had multiplied and spanned across independent, wholesale and formal sectors.

While newspapers and stores are adorned with BACK TO SCHOOL promotional activity and point of sale in December and January, it does, however, ‘pay to be a clever shopper’. While retailers promote stationery on broadsheet at lower prices, the variances between retailers on the same line differ dramatically. Pritt Glue Stick 43g, for example, is one of the biggest promoted lines on BACK TO SCHOOL themed promotions.

CNA promoted Pritt Glue Stick 43g for R37.90, while Checkers, Spar and Shoprite promote this same line at R27.99. In this instance, the price on promotion varied by 30% between retailers. This may seem like a small saving on one unit, however when ordering according to BACK TO SCHOOL stationery lists: 6 x Pritt Glue Stick 43g – the savings start adding up!

Promoted Price of Pritt Glue Stick 43g in Selected Retailers over a 2 year period

• Concentration of broadsheet promotions occurs in Dec – Jan for BACK TO SCHOOL season. Some retailers promote in Jun / Jul months
• The retailers promoting this line at 30-40% higher than the cheapest retailers are Game, CNA and Makro

And what is the cost of convenience? According to Silo Analytics’ calculations, the convenience of ordering from a catalogue can add on 20% to your total bill – a price that many parents are willing to pay for the luxury of shopping from the comfort of their couch.

In the review of the data, it is apparent that there are clear winners and good value to be found by shopping the broadsheets.

Our advice: Shop smart, shop early and shop around!

PS: What report would you like to see next? Let our Silo Analytics Team know.

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