A recent study by consumer magazine Which? has revealed a stark reality for shoppers in the UK: convenience stores are charging a premium for everyday essentials. The analysis, which compared prices of 42 common items at larger supermarkets and their smaller convenience store equivalents, found that Tesco, Sainsbury’s, and Morrisons all charged more for the exact same products at their smaller stores.
For instance, a medium white loaf of Hovis cost 12 percent more at Sainsbury’s Local and Tesco Express, and a staggering 14 percent more at Morrisons Daily. The price disparity extends beyond bread, with Weetabix costing 20 percent more at Tesco Express, Mr Kipling bakewell slices 54 percent more expensive at Tesco Express, and Morrisons own brand chickpeas at £1, more than twice as expensive at Morrisons Daily compared to the big Morrisons (49p).
While a handful of items were cheaper at smaller stores, such as Doritos and Kenco Millicano instant coffee, the overall trend points to a significant price difference that can impact household budgets, especially for those who rely on convenience stores due to factors like limited access to larger supermarkets, lack of car ownership, or online shopping constraints.
In response to the findings, Tesco attributed the price difference to higher operating costs, including rent, rates, and operating costs, which are typically higher in built-up areas where their Express stores are located. Sainsbury’s echoed this explanation, emphasizing higher operating costs in city or town centre locations where their Local stores are situated.
Morrisons, on the other hand, acknowledged the price discrepancy but highlighted their efforts to maintain affordability and availability in all their stores, including the introduction of their budget ‘Savers’ range in Morrisons Daily stores nationwide.
The findings raise concerns about potential price gouging at convenience stores and the potential impact on low-income households who rely on these stores for essential items. The issue underscores the need for greater transparency in pricing and for retailers to consider the affordability challenges faced by certain communities.
