Supermarket giants are ‘ripping off’ customers by charging higher prices in their small convenience stores as trust in the big chains drops to a nine-year low, figures reveal
- Rishi Sunak has asked the CMA to investigate whether there is profiteering
- Prices are usually higher in smaller convenience stores such as Tesco Express
Two in three shoppers feel ripped off because supermarket giants are charging much higher prices in their small convenience stores.
The figures come from Which? amid new research showing that trust in supermarkets has dropped to a nine-year low.
The supermarkets generally charge more for the same products sold through their smaller convenience stores, such as Tesco Express and Sainsbury’s Local, than in larger outlets.
At the same time their small shops have fewer of the cheapest budget lines, which makes life difficult for those who do not have a car or cannot travel to large stores.
Rishi Sunak has asked the Competition & Markets Authority (CMA) to investigate whether there is any evidence of profiteering – or greedflation – on groceries.
The supermarkets generally charge more for the same products sold through their smaller convenience stores, such as Tesco Express
Separately, the CMA has already signalled concerns that the big supermarkets have increased profit margins on diesel, which has put up prices across the economy.
A Which? survey found that 67 per cent of people believe supermarkets are imposing rip off prices in their convenience stores.
Three-quarters (75 per cent) also said they find the price of convenience store foods too expensive compared to larger supermarkets and nearly half (45 per cent) struggle to find affordable food in convenience stores.
Which? said: ‘Worryingly, half (51 per cent) of those who rely on convenience stores at least once a week are struggling financially with the cost of living crisis – compared to a third (35 per cent) of consumers overall.’ The survey found that 57 per cent said that having more budget ranges in the convenience outlets would help.
The consumer champion is calling on supermarkets to improve availability of essential budget options in their convenience stores.
Separate research in the Which? monthly consumer insight tracker found that trust in the groceries industry dropped in May to the lowest it has been since November 2014.
The confidence score measures just +36 – on a scale of -100 to +100 – which represents a drop of 32 points since it peaked at +68 in May 2020.
The Which? director of policy and advocacy, Rocio Concha, said: ‘Trust in the groceries industry has fallen to a nine-year low – with many consumers telling us they feel ripped off by high convenience store prices.
Rishi Sunak (pictured today) has asked the Competition & Markets Authority (CMA) to investigate whether there is any evidence of profiteering – or greedflation – on groceries
‘People should not have to pay over the odds for everyday essentials just because they struggle to get to a large supermarket.’
She added: ‘While the whole food supply chain affects prices, supermarkets have the power to do more to support people who are struggling, including ensuring everyone has easy access to basic, affordable budget ranges at a store near them, including smaller stores for consumers who rely on these.
‘Supermarkets must also provide transparent pricing so people can easily work out which products offer the best value.’
The British Retail Consortium insisted stores were selling some of the cheapest food in Europe, despite surging costs.
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