Supermarkets are starting their pre-Christmas price promotions early to capture shoppers' attention and protect market share. Sainsbury's chief executive told the Telegraph that consumers' "feistiness" will make promotions as important as ever this holiday season.Asda's chief financial officer, quoted in the Guardian, predicts that shoppers will benefit from this year's hyper-competitive promotions:
This year will be the most aggressive on price in a decade, which is good news for Asda shoppers.Tesco's director of retail, quoted in the Times Online, makes the important point that easy-to-understand pricing is the key:
What customers want is everyday low prices. When customers are tightening their belts they like certainty of pricing, they like round price points and they like being able to rely on prices being consistent.How will the price wars affect shopper loyalty? And even if price promotions sustain turnover, what will retailers' profits look like?
