Retail price promotion influences for product varieties in grocery stores: evidence from Spain

PurposeThis paper aims to focus on measuring and assessing the sales impact of temporary retail price discounts on all brands within a product subcategory as well as across other subcategories that differ slightly on composition and taste.Design/methodology/approachTo test these effects, the study uses a regression approach to analyse data of several fast moving consumer good subcategories obtained from a Spanish supermarket.FindingsThe results confirm that temporary retail price reductions increase brand sales of the promoted brands, especially at weekends. Some brands gained sales at the expense of sales of substitute items within the same subcategory and also from sales of competing item…