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WMG Comments: End of BOGOFs?

Jan Godsell

A recent report by the House of Lords European Union Committee has called for the development of a policy framework, within the EU, aimed at tackling the issue of food waste. One of the key recommendations picked up in the media, was the issue of incentives and promotions such as ‘Buy One, Get One Free’ (known as BOGOF) deals. The report suggested that actions such as BOGOFs can pass food waste on to the consumer and encourage them to buy in larger volumes than required, and has proposed that such tactics should end.

This recommendation has been supported by Professor Jan Godsell, Professor of Operations and Supply Chain Strategy at WMG, who has told the Birmingham Post that BOGOF offers ultimately don’t benefit customers, even though they appear to be good value at the time.

Professor Godsell said:

For consumers, it is actually good news that supermarkets are being encouraged to stop the Buy One, Get One Free deals as they interfere with demand and have negative effects that impact shoppers and the wider economy. Research by WMG into supply chain strategy found that BOGOFs and other promotions weren’t beneficial for consumers in the long term, even though they appear to give short term gain.

Consumers can find themselves either with excess perishable products that they can’t use and they go to waste. Alternatively, they end up with their cupboards full of products that are tying up their cash.”

She added “Those supermarkets, such as Aldi, who don’t run BOGOF deals are able to employ a much smarter strategy to provide the best deal for consumers.

More information:

Counting the Cost of Food Waste: EU Food Waste Prevention - House of Lords European Union Committee

Fri 11 Apr 2014, 15:06 | Tags: Supply Chains WMG Comments Business Transformation