U.K. supermarkets are stepping up promotions of fresh, frozen and canned seafood this holiday season, hoping the efforts drive more customers through their doors. Retailers are desperate for a boost in sales leading up to Christmas, suffering from an overall grocery sales decline due to a weak economy.
U.K. supermarket sales are down 0.2 percent for the 12 weeks ending 9 November, according to research firm Kantar Worldpanel, a record decline since Kantar began tracking sales in 1994.
“The fight for a bigger share of sales has ignited a price war, which means an average basket of everyday goods such as milk, bread and vegetables now cost 0.4 percent less than it did this time last year. This is bad news for retailers, but good news for shoppers with price deflation forecast to continue well into 2015,” said Fraser McKevitt, head of retail and consumer insight for Kantar Worldpanel.
As a result of slumping sales, discount chains are banking on high-end specialty seafood items to lure more shoppers into their stores while mainstream supermarkets such as Tesco are featuring farmed salmon.
Discounter ALDI has probably garnered the most attention for its specialty seafood items, announcing that it would start featuring “Beluga caviar” at GBP 10 (USD 15.70; EUR 12.53) for 20-gram tins in U.K. stores in December. The retailer has also added several high-end items at its stores in throughout Europe and the United States. “The good thing ALDI has done is to put more specialty products in. Also, even though they don’t have a fresh fish counter, they are carrying more pre-packed fish,” John Ibbotson, director of consulting firm Retail Vision, told SeafoodSource.
As a side note, ALDI was forced to change the name of the product from “Beluga caviar” to “Specially Selected Caviar” after a backlash from organizations and the seafood industry. The new package will clearly identify that the caviar is a cross-breed of Amur sturgeon and Kaluga sturgeon, not
Still, because the chain has been adding specialty items — and the fact that discounters currently rule the U.K. grocery market — ALDI’s sales are a striking 25.5 percent higher than they were last year, according to Kantar Worldpanel. Plus, the retailer’s share of the U.K. grocery sales has grown to 4.9 percent.
Likewise, Iceland supermarket is featuring several specialty seafood items at a discount during the holiday season, such as Peruvian diver scallops for GBP 4 (USD 6.28; EUR 5.01) per 250 grams, lemon and herb-crusted salmon at GBP 7 (USD 10.99; EUR 8.77) for 600 grams. and whole cooked Canadian lobster at GBP 5 (USD 7.85; EUR 6.26) for 350 grams.
“Our aim this year is to offer great quality meal solutions for our customers, from simple starters in shells to a side of salmon for the buffet table. The range is accessible to most customers, with prices ranging from GBP 2 to GBP 7 (USD 3.14 to 10.99; EUR 2.52 to 8.77), but we haven’t compromised on quality,” an Iceland spokesman told The Daily Mail. Iceland and ALDI declined to comment for this article.
Meanwhile, Tesco is partnering with the Norwegian Seafood Council (NSC) on a multi-pronged advertising and shopper education campaign promoting Norwegian salmon. Running from 17 November through January 2015, the campaign is “designed to inspire consumers to make an informed decision to choose Norwegian salmon as a tasty and healthy alternative to chicken,” said Jack-Robert Møller, UK Director of the NSC.
“This is the first time we have ever worked with a retailer in the U.K. in such an innovative manner. It aims to encourage consumers to add salmon to their basket more frequently and increase
The centerpiece of the campaign is providing salmon recipes to shoppers and preparing salmon for in-store sampling. Tesco is also featuring a “salmon recipe hub” on Tesco.com, including sponsored searches, and is promoting the campaign via direct mail to its Tesco Club members, print and digital ads, and an advertorial in its magazine.
“We know the government health guidelines encourage people to eat more oily fish. However, our research shows that people want inspiration, so they can cook tasty and delicious dishes for their family at home,” Moller said.
Throughout the promotion, Tesco and NSC are featuring two chilled, pre-packed products: boneless, Norwegian salmon side for GBP 24 (USD 37.68; EUR 30.31) and boneless Norwegian half-salmon side 500g, GBP 12 (USD 18.84; EUR 15.02). The packages feature the Norge logo, which assures customers that the salmon is “from the cold, clear waters of Norway sustainably harvested from strictly regulated farms ensuring quality salmon is in abundant supply all year-round,” Moller said.
While seafood is not necessarily the savior of U.K.’s struggling grocery market, retailers expect that their efforts to carry more mainstream and specialty items this holiday season will impress shoppers. Of course, this strategy also differentiates themselves from their competitors in the crowded food retail space.
