Shoppers could be paying almost four times more than they need to for the same branded grocery products at certain times. This is according to an investigation into supermarket pricing by consumer watchdog Which? that analysed the cost of 493 branded items at Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose throughout 2020.
The investigation claims to have revealed not just the “pricing secrets” that mean shoppers could be paying over the odds for the same products depending on the days they shop, but also the types of grocery products that fluctuate the most when it comes to price.
Lavazza Qualita Rossa Ground Coffee (250g) at Ocado had the most dramatic price difference, as the investigation found shoppers could pay almost four times more for the same product on different days. It was at its cheapest price of £1.30 for 63 days in 2020, however for more than a third of the year (130 days), it cost £5 – a 284% difference for the same product. Ocado said this price fluctuation was an error that has now been corrected.
Meanwhile, Which? pointed to the price of Müller yogurts as an example of the so-called ‘high-low’ tactic used by many supermarkets – when prices are dramatically hiked and then slashed at regular intervals. For example, Müller Light Greek Luscious Lemon yogurts fluctuated substantially at Sainsbury’s during 2020, flipping between £1 and £2.75 – a 175% price difference – at roughly three-week intervals. The same product was also available for £1 or less in at least one of the major supermarkets for about 85% of the year.
Other products the watchdog said saw significant price variations included Carte D’Or Vanilla Ice Cream and Loyd Grossman Tomato and Basil Sauce at Asda – with prices fluctuating by 133% and 125% respectively.
At Morrisons, shoppers could pick up a bottle of Shloer’s Red Grape Juice Drink for £1 on a good day; however it cost more than double (£2.25) on other days – representing a 125% increase.
Which? also found there were price variations of 122% for Jordans Country Crisp Four Nut Cereal at Tesco. Shoppers could sometimes pay just £1.35, yet on other days the same pack was more than double the price at £3.
The investigation also analysed pricing at a category level, looking at 19 areas from chocolates to cheese, and found the price for branded cakes and biscuits fluctuated by 48% on average – more than any other category.
In this category, Which? analysed the price of 14 products and found a 10-pack of Cadbury Chocolate Mini Rolls at Asda had the biggest price difference. It cost just £1.20 at its cheapest but was more than double the price at £2.60 on certain days.
The price of juices and smoothies varied by 41% on average, followed by cooking sauces (38%), crisps (36%) and cereal (35%).
Across all 19 categories analysed, Asda was found to have the lowest average prices for branded groceries.
Meanwhile, Waitrose was the most expensive supermarket for branded items in eight categories including energy drinks, ice cream and tea, and Ocado for seven categories including juice drinks, coffee and cheddar.
Almost all the products in the investigation varied in price and could be found discounted at one or more supermarkets at any time. However, a Which? survey found one in five shoppers are confused by grocery promotions and the majority (73%) would prefer consistently low prices.
Aldi and Lidl were not featured in the investigation as they stock fewer branded goods.
“Our research reveals just how wildly food and drink prices can fluctuate from day to day, meaning people are at risk of massively overpaying for branded groceries depending on when and where they shop,” said Ele Clark, Which? Retail Editor.
“We would recommend keeping an eye on the prices of your favourite products and stocking up when they’re discounted to avoid paying over the odds.”
An Ocado spokesperson responding to the study by saying: “Ocado is committed to offering customers the best range, service and value in the market. As part of this commitment, we are proud to offer over 49,000 products – more than any other supermarket.
“The fluctuation in price for the Lavazza product was due to a technical error and has since been resolved. The regular price is now back in place and is in line with most other major grocery retailers.”
Waitrose commented: “We constantly review prices to ensure that we offer the highest quality products at fair prices, combined with fantastic customer service.”
NAM Implications:
- The issue here is that loyal users of brands notice the difference…
- …with a traditional risk that any ‘deception’ triggers a ‘tell-a-friend’ response.
- (Please me and I tell one friend. Disappoint me and ten people learn of my displeasure)
- Add social media and multiply these numbers by a hundred…
- …or even thousands…
