A study by Which? highlights a significant price disparity between convenience stores and larger supermarkets.
- Supermarket convenience branches can charge shoppers as much as 21% more than their larger counterparts for the same items.
- Morrisons shows the greatest price difference, with costs up by 21% at its Daily stores.
- Tesco and Sainsbury’s convenience outlets also charge more, citing higher operational costs.
- Consumers reliant on smaller stores face spending more annually on groceries.
A recent investigation conducted by the consumer group Which? has uncovered that supermarket convenience stores may charge customers up to 21% more than larger supermarkets for the same grocery products. This study focused on 42 grocery items and compared prices at select Morrisons Daily, Sainsbury’s Local, and Tesco Express outlets with those in their respective full-sized stores.
The findings revealed Morrisons showed the most significant price difference. At its convenience branches, shoppers paid, on average, 21% more than they would at larger Morrisons stores. This price discrepancy extended to members of Morrisons’ loyalty scheme, who face even greater costs at convenience branches due to the unavailability of the More card there, though Morrisons is reportedly working to extend this scheme to its Daily stores in the coming months.
Tesco’s convenience stores showed a price difference of 10%, with Clubcard holders experiencing an 11% rise. The company explained that its loyalty offers differ in smaller stores, as they cater to different shopping occasions. Similarly, Sainsbury’s shoppers faced a 5% increase in prices at its convenience outlets, with Nectar members potentially encountering an up to 14% price increase.
According to both Tesco and Sainsbury’s, their smaller stores are often situated in city or town centres, where costs such as rent and operational expenses are higher, justifying the price differences. Retail editor Ele Clark from Which? noted that individuals without easy access to transportation or online delivery options are more reliant on nearby smaller stores. Consequently, these consumers are likely to incur higher annual grocery expenses as opposed to those who can shop at larger supermarkets.
This study is part of a broader series of reports by Which? that examines supermarket pricing strategies. Previously, the watchdog had scrutinised loyalty schemes offered by supermarkets, questioning the actual value of the discounts provided.
Customers dependent on convenience stores may face significantly higher grocery bills due to price disparities with larger supermarkets.
