A recent study highlights price disparities between supermarket convenience stores and their larger counterparts.
- Customers may pay up to 21% more for groceries at Morrisons Daily compared to full-sized stores.
- Tesco Express and Sainsbury’s Local also show significant price differences on the same products.
- Morrisons loyalty members could face even higher price hikes at convenience branches.
- Many consumers are reliant on these stores due to limited access to larger supermarkets.
A study conducted by Which? has brought to light the significant price differences that exist between supermarket convenience stores and their larger versions. The investigation compared 42 grocery products over multiple visits in June and July at stores including Morrisons Daily, Sainsbury’s Local, and Tesco Express. It revealed that consumers might be paying as much as 21% more at Morrisons Daily for the same items available at the larger supermarket branches.
The disparity in pricing extends to loyalty scheme members as well. For instance, participants in Morrisons’ More loyalty program could pay up to 22% more at convenience branches due to the unavailability of loyalty benefits at these locations. Morrisons acknowledged the issue and mentioned they are “actively working” on rolling out the More card to these convenience stores in the near future.
Similarly, Tesco shoppers can experience a 10% price increase at the Express outlets, with Clubcard holders facing an 11% rise. Tesco attributes these differences to their tailored Clubcard Prices, which are customized for smaller store purchases, often situated in city centers. Sainsbury’s customers are not exempt either, encountering a 5% price difference, with Nectar members potentially paying 14% more, reflecting the associated costs of operating in high-rent areas.
According to Ele Clark, Who is a retail editor at Which?, many consumers rely heavily on these convenience stores due to limited transportation options or the unavailability of online deliveries. Despite the convenience of location, regular users are likely to spend substantially more over time compared to those who frequent larger supermarkets.
This study is part of a series of reports by Which? that scrutinize supermarket pricing and loyalty programs. The consumer watchdog’s recent investigations spotlight the “questionable” nature of discounts offered through various retailer loyalty schemes, emphasizing the need for consumers to critically evaluate where they shop.
The study underscores the financial impact on consumers dependent on local convenience stores, urging scrutiny of supermarket pricing strategies.
