Supermarkets Using Low-Price Promotions To Hike Prices

Mon, 16 Feb 2009
 
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Supermarket giants are using money-saving deals to disguise price rises, according to a new report by The Grocer .

The trade magazine claims retailers are luring cash-strapped shoppers with hundreds of limited-period special offers on branded products, and then returning the goods to a higher price than before when the promotion draws to a close.

The findings follow an investigation into a series of low-price promotions by the UK’s big four supermarket chains - Tesco, Asda, Sainsburys and Morrisons .

Analysis of data from the magazine's weekly "shopping basket" found that while more than a third of branded products were on special offer, a quarter of the money-off deals they examined were sold at a higher price once the promotion came to an end.

Examples included a 200g jar of coffee at Sainsbury’s, reduced from £4.13 to £3 during January and then rising to £4.45.

Similarly, Tesco reduced a 2.85kg pack of Ariel washing powder from £5.54 to £5 for four weeks, and then hiked the cost to £5.78 once the offer concluded.

Researchers said the tactic was seen mostly in household goods, hot beverages and fizzy drinks, although other items such as chocolate biscuits and HP sauce were also found to have risen in price after promotion.

All of the big four supermarkets have strongly denied using such promotions to hide price increases.

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