Our recent blogs about the German market have outlined how physical retail locations reacted to mandatory stores closures. Our focus has primarily been on the TV category where retailers reduced their overall flyer promotions after the lockdown decision went into effect.
This week’s focus is on reviewing which categories were promoted during the lockdown including weeks 12-17.
The increased time that people are spending at home spurred increased demand for both small and major appliances. As people invest in making their home environments more comfortable, demand expanded. Additionally, demand for categories such as TVs and streaming devices went up as people are home more often and unable to enjoy the typical types of entertainment that they did pre-lockdown. Households also adapted to working at home and responded by creating home offices, which spurred more demand for Laptops and Computer Equipment.
Looking at ad placements weighted by store counts for each merchant, the MDA and SDA segments accounted for 37% of the advertising mentions from flyer promotions during weeks 12-17. Small kitchen devices like food processors and coffee makers, as well as shavers and hair clippers, were among the categories that captured the most advertising attention. Their weighted share of the promotional activity was furthered by their availability at merchants that have high numbers of store locations.
The focus on the Entertainment category within retail circulars led the Consumer Electronics sector to account for a considerable share, 32%, on all communicated ad placements over the time period. As noted, attention on TVs and Home Entertainment accounted for the majority of the advertising activity in this segment.
IT products accounted for 30% of the promotion share during weeks 12-17, Laptops, Computer Equipment, and Printers were the leading categories within this segment.
gap intelligence will continue to monitor flyer activity by category to understand how this will change and evolve as stores and the economy begins to reopen.
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