SUPERMARKET discount coupons and other loyalty promotions are causing people to overspend, a new study has found.
Research commissioned by supermarket chain Aldi has found that Irish shoppers are spending up to €477 more a year chasing supermarket discount vouchers.
A Coyne Research study commissioned by Aldi Ireland shows that half of shoppers overspend, shop more often or buy things they don’t need just to qualify for supermarket discount vouchers.
Usually these coupons give €10 off next purchase for every €50 spent but must be spent within 10 days.
The study found that 46 percent of respondents agree that “buy one, get one free” and “three for two” offers lead them to spend more.
And 30 percent of respondents said loyalty programs and discount coupons at the supermarket result in food being wasted.
The Coyne research found that $9 was the average additional overspend.
About three in ten indicated that the additional spend triggered by vouchers was over €10.
Coyne said it means Irish shoppers could be spending up to €477 a year more than they can spend on groceries chasing coupon discounts if they overspend on every purchase.
The survey was conducted by Coyne Research between June 21 and July 6, sampling 1,000 adults ages 18 and older.
Aldi Ireland said it does not operate a loyalty program or discount vouchers.
It claimed that it was instead focusing on offering customers the lowest possible grocery prices in its 150 Irish stores.
The survey found that despite the promise of big savings from supermarket loyalty and discount coupon programs, 60 percent of shoppers believe these programs cost more to use than expected.
Four out of ten shoppers believe discount coupons benefit the supermarket more than the shoppers.
About 43 percent of shoppers said “buy one, get one free” and “three-for-two” offers lead them to buy things they don’t really need or want.
And 30 percent believe supermarket loyalty programs and discount coupons tempt them to waste food.
Aldi Ireland group chief executive Niall O’Connor said: “The survey results clearly show that current supermarket loyalty schemes and discount vouchers can indeed increase the cost of weekly shopping for Irish families.
“The cost of performing these marketing tricks is built into our competitors’ grocery prices and ultimately means higher prices for shoppers.”
Mr O’Connor said the results of the survey come at a time when consumers are facing the biggest drop in spending power in a generation.
Coyne Research chief executive Bernie Coyne said at a time when many families are feeling budget pressures, coupons and other supermarket schemes might seem enticing. “However, our research shows that Irish shoppers are beginning to question whether discount vouchers are of any real use to them or whether they offer them real savings.”
She said research by retail research group Kantar found that Irish shoppers make an average of 53 supermarket trips to other supermarkets a year.
Kantar recently said that rising inflation meant Irish consumers could now spend €453 more a year on their annual grocery bill.
It was also found that consumers have cut back on supermarket spending, reduced trips to stores and are choosing private label goods as groceries.
https://www.independent.ie/business/personal-finance/money-off-vouchers-prompt-shoppers-to-overspend-survey-finds-41884002.html Survey results show that savings coupons encourage shoppers to overspend