Asda returns to three-for-£10 in U-turn on multibuy deals?

29 October, 2010

Asda has reinstated its three-for-£10 multibuy deal on wine five months after it vowed to axe the mechanic to focus on higher price brackets.

In May the retailer upped the promotion to three-for-£12 in a bid to raise quality and price following customer research. But it’s been forced to rethink its strategy due to market changes “in a fast- moving environment”.

A spokesman said: “If a week is a long time in politics, then it’s even longer in retail.”?Sainsbury’s, which followed Asda in notching up the price of the infamous promotion, said it couldn’t confirm whether three-for-£10 would return to being a core element of its offer.

A spokesman said: “We can’t comment on current or future promotional strategy or plans, but it is a very competitive marketplace and we are really confident we are giving customers the best value.”?A leading supplier told OLN: “By axing three-for-£10, Asda has created a massive log-jam of stock and it’s tried various ways of dealing with that, including single-bottle discounts.

“The mistake it made was putting everything into three-for-£10 and when it moved to £12 it didn’t generate any-where near the same amount of sales.

“The trade needs to wake up to the fact that it’s back and will probably run until Christmas at least.”?New research conducted by Asda among 4,000 shoppers has shown that 58% consider price when buying wine, making it a higher priority than recog­nisable brands, country of origin, grape variety and food matching.

Further emphasising the importance of wine deals, six in 10 shoppers said price and promotions were the most useful information, compared with 50% for labelling, 34% for friend and family recommendations, 33% for in-store labelling and 18% for press reviews.

Advice from store staff scored lowest, considered useful by just 8%.

The survey suggested the recession had only had a limited impact on consumers’ alcohol-buying habits. Some 82% said they were drinking the same amount of alcohol overall as before the down-turn, with just 16% reporting drinking less.

One in 10 have started to look for cheaper brands, while 15% said they were trying to buy more alcohol on promotion. Just 8% had switched stores to save money on drinks purchases.

When it came to wine, the survey showed 42% were drinking as much as before the recession, with just one in five saying they were drinking less.

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