Why supermarket pricing is another reason to shop local


Updated on 17 July 2015 | 0 Comments

With supermarkets criticised for their "confusing" pricing, isn't it time to look local?

Following a super-complaint made in April by Which?, the Competition and Markets Authority (CMA) watchdog has been investigating supermarket pricing.

The super-complaint pointed out cases where prices went up or stayed the same as pack sizes were reduced, and it was extremely critical of special offers that don’t represent a genuine saving – such as when a multi-buy offer coincides with a mark-up in price of a single product.

The CMA has now published its response, in which it said that retailers were generally compliant with legislation, but more could be done to stamp out complexity in unit pricing, and that some supermarkets were obfuscating true value for money with some multi-buy deals.

It also said that while some products, such as apples, might be sold as individual items, they are also sometimes sold by weight, which makes it difficult to compare prices. It also said that the practice of promotional pricing needed a rethink to be fair to customers. You can read more on the details of the decision on our sister site loveMONEY.

Financial commentator Louise Cooper, of CooperCity, said on her website that the supermarkets weren't playing "funny games" with the prices of products people bought regularly, such as milk, which have stayed fairly stable.

She points out that a 5kg bag of white potatoes, which you might buy less frequently than once a month, cost £1.74 during November 2013 and £3.39 during May the next year. "That is almost double the price," she said. "I realise the autumn is when potatoes come out of the ground but do storage costs or transportation costs double the price? I doubt it."

All of this criticism aimed at the big players is great news for local shops.

Let’s shop local

Supermarkets can offer cheap deals on many items because they buy in bulk. That is simple economics of scale, but despite the fact that you might be able to save a bit of money, the CMA's comments really serve to remind us of one important thing: supermarkets are never really on your side.

The CMA's response isn't going to improve the perception many of us have of supermarkets, following 2013's horsemeat scandal, the FSA's revelation this year that 73% of supermarket chicken test positive for campylobacter, and the 2007 dairy price fixes that cost the industry fines of over £116 million.

While the CMA hasn't condemned the supermarkets outright for their behaviour this time, it's clear that they have, at times, been up to some funny business with their pricing structures.

If you haven't already been driven to avoid the superstores, now is a great time to try shopping local to discover what's on your doorstep. You'll also get to experience first-hand the difference in service and attitude towards customers between the big players and small independents.

Regular encounters with the same people from the local community are almost guaranteed to result in a better shopping experience. They’ll also happily supply you with – perhaps throw in for free – the scraps you’d struggle to get hold of in the supermarket; for example, local butchers might help you find bones for stock (or the dog), pig trotters or offal.

I’m not saying that supermarket workers don’t try. They can be every bit as friendly as your local butcher, but they deal with thousands of customers every day and simply can’t build up the same kind of relationship with them as a small business can. Chances are, besides a few well-trained staff on the meat and fish counters, the staff in a supermarket are also not as knowledgeable as your local specialists.

Shopping doesn’t have to be the vastly impersonal and uninspiring experience of walking down grey tiled aisles with the inevitably broken-wheeled trolley while signs, rather than people, direct your route and usher you zombie-like around the store. 

Yes, small traders want to sell you something, but they’re passionate people who are far more likely to offer advice for products to suit your needs, rather than the one-fits-all approach taken by big retailers. You’re going to learn something from them. And you'll also have a chat and get to know the people in your community; both your fellow shoppers and the people behind the counter. And you could probably find out the exact farm your meat or veg came from. 

And don't forget farmer's markets too, which offer a wide range of produce, usually produced locally.

Limited local options?

If you don’t have many local shops, or there’s a particular type of shop missing from the high street, you might like to take a look on MySupermarket’s new Shops section. From this you can order wine, meat, fish, cheese, baked goods – pretty much everything to fill the gaps after your local shop.

The best part is that these come from small businesses, so you can be discerning with your purchases and support smaller traders rather than the supermarkets. While this does mean you’re entirely missing the social aspects of shopping local, and you can’t compare prices as easily as you can on the rest of the site, you still get to devour the fantastic quality food on offer from some top British producers.

You can also look for local companies who deliver meat, fish or veg boxes to your door.

Do you shop at supermarkets? Or do you opt for local? Let us know in the Comments box below.

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