A new study has found that Sainsbury’s Local and Tesco Express customers are paying up to £320 and £280 respectively more a year than those who shop at larger stores for the same items.
The fact that prices can be higher in convenience stores is nothing new. However, consumer watchdog Which? has raised the issue as many people are currently avoiding large supermarkets in favour of shopping in local convenience stores due to the pandemic.
More than half (51%) of Which? members surveyed who used convenience stores said cost was one of their biggest bugbears.
The study analysed the average weekly price of 48 own label and branded groceries for five months last year across Sainsbury’s and Tesco’s convenience stores – and compared it with the cost of the same items in their supermarket outlets.
The watchdog found shoppers could be paying £71.26 a week at a Sainsbury’s Local, an average of £6.18 more compared to its supermarkets. This equates to c-store customers paying 9.5% more a year (£322) than they would in a regular Sainsbury’s supermarket.
At Tesco Express, Which? found that customers could be paying £69.12 a week for the basket of goods, a hike of £5.37. Over a year, this would make it 8.4% (£279) more expensive to shop in Tesco convenience stores compared to its larger supermarkets.
At Sainsbury’s, Which? found the products with the biggest price difference were a 400g can of Napolina Chopped Tomatoes, which was a third more expensive at Sainsbury’s Local, and a 250g packet of McVitie’s Ginger Nut Biscuits, which was just over a quarter pricier at a Sainsbury’s Local store compared to a larger supermarket.
A number of Tesco own label products were a quarter (23%) more expensive in Express stores than in supermarkets, including Tesco 0% Fat Greek Style Yogurt (500g) and Tesco Orange Juice With Bits, Not From Concentrate (1lt).
However, in some cases products were found to be the same cost or even a fraction cheaper in the convenience store. For example, a 500ml bottle of Flash spray with bleach was the same price (£1) at Sainsbury’s Local, Tesco Express and the supermarkets, while McVities Digestives were on average 1p cheaper in the smaller stores.
Responding to the Which? findings, Sainsbury’s said that product price is influenced by a variety of factors including special offers, while Tesco said that rents, rates and operating costs are higher in built-up areas.
The study further highlighted the shift towards convenience stores in recent times with its survey of members finding that 61% had shopped at a Costcutter store between one and three times a month in the eight months after the first nationwide lockdown began in March, compared to just 7% before the pandemic.
Similarly, 20% had shopped at a Co-op four to six times a month since spring 2020, compared to just 12% before lockdown.
Natalie Hitchins, Head of Home Products and Services at Which?, commented: “Convenience stores have been a huge help to many of us during the pandemic. However, our research shows that shoppers who rely solely on supermarket convenience stores, rather than their larger stores for their groceries, are paying a premium.
“Customers will generally get more for their money at larger supermarket stores, but for some products, the price difference may not be significant, so it is always worth checking prices to make sure you are getting the best deal.”
NAM Implications:
- There will be a ‘price tipping point’ where super-savvy consumers will transfer their custom…
- …and feed their long term memories.
- We all know the rationale for the price differences…
- …but lockdown consumer-shoppers have the time and tools to measure (and tell a friend) their conclusions…
- But perhaps the mults would prefer to await the ‘switch figures’?
