Retiring the Store Flyer: Effects of Ceasing Print Store Flyers on Household Grocery Shopping Behavior

Abstract

Print store flyers, featuring a retailer’s assortment and promotions, are still widely used. Yet increasing digital engagement and sustainability targets have many retailers rethinking whether they should actively distribute these flyers door-to-door. At the same time, retailers are worried about ceasing the distribution of a key marketing tool and whether digital alternatives are equally effective. This study analyzes grocery retailer Lidl’s decision to retire its print flyer in one province of the Netherlands using household scanner data and a purpose-designed survey on the adoption of digital alternatives. The results of a synthetic difference-in-differences analysis reveal that, although the same information is available digitally, households engage in fewer shopping trips and spend less after they stop receiving the print flyer (compared with households in other provinces). No specific retailer benefits from the change; households essentially reallocated purchases to a primary retailer they already visited regularly. Notably, if households primarily shop at Lidl, they do not change their shopping behavior. Promoting digital alternatives cannot offset the negative effect, because even if households adopt a digital alternative, they turn away. Overall, retiring the print flyer may backfire and promoting digital alternatives does not seem effective for households that did not adopt them before.

Keywords: retailing, store flyer, natural experiment, advertising, responsible retailing, feature promotions