The Impact of Store Flyers on Store Performance : A Format and Customer Related Approach

The purpose of this study is to investigate the impact of store flyer characteristics on store performance for different formats (hypermarket and supermarket) and customer segments (additional and regular shoppers). Specifically, the paper tests propositions on how flyer duration, variety of featured purchasing options, the category and brand mix on feature and the method used to communicate the deal price affect store traffic and sales. Loyalty cards and scanner data from a grocery chain covering a 52-week period indicate that optimal store flyer configuration is related to store format. Moreover, the response to flyer promotion programs varies across customer segments according to the degree of store loyalty. Implications for retailers are discussed with suggestions for future research