Coles Online Wins Big With Little Shop Promotion

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By Published On: September 26, 20180 Comments

Coles’ Little Shop promotion has done more than impress consumers; it’s also attracted an extra 250,000 consumers to its online store and increased the supermarket chain’s market share.

For a limited time, Coles ran a ‘Little Shop’ promotion, which saw shoppers flocking online and into stores across the country to get their hands on miniature versions of household items when they spent $30 or more in one transaction.

Over the eight-week campaign, the supermarket giant reportedly saw a 16 percent increase in the number of unique visitors on its website, compared to the previous eight-week period. This equates to more than 250,000 people or one percent of Australia’s total population.

According to data from Hitwise, Coles also saw a 19 percent increase in total site visits over this period. This accounts for 2.5 million extra site visits over the total duration of Coles’ Little Shop promotion.

Analysts believe this boost in online traffic, when paired with extra in-store sales, has given Coles an extra $200 million in sales for the quarter. Early estimates suggest this could be enough to push Coles ahead of Woolworths in the ongoing battle between Australia’s leading supermarket chains.

However, online traffic wasn’t the only area Coles excelled in during its consumer-focused special, as the business also successfully increased its online market share. During the campaign, the company’s share of the online grocery sector rose by 11 percent, reaching a high of 22.9 percent.

The bulk of Coles’ online growth during this promotional period stemmed from a key demographic of 45-54-year-olds. Twenty-one percent of the growth within this age group came from women, which Hitwise believes is a signal of the company’s success in attracting its key market of middle-aged women.

Another key market Coles was successfully able to tap into with its Little Shop promotion was consumers who are driven primarily by reward programs. Historically the budget-savvy retailer has struggled to attract more affluent, higher-income shoppers. However, with cute miniature household goods on offer, Coles was able to draw shoppers who tend to favour gourmet supermarkets into its mix of shoppers.

Not surprisingly, the rewards-based special also saw an uplift in the number of consumers visiting the site purely for the lure of getting a freebie, with a recorded 18 percent increase in this loyalty-driven segment.

This is positive news for the supermarket chain, after months of bad press surrounding its single-use plastic bag policies. It also comes after early reports claimed consumers were outraged by Coles’ choice to hand out plastic goods for free while charging for plastic bags.

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