Supermarket Exploitation

8 March, 2007

Shopped! How supermarkets rip you off

By JOANNA BLYTHMAN

The Daily Mail Supermarkets use clever tricks to push up their profits

"Think you're making a saving by shopping at a superstore? Joanna Blythman reveals the devious tricks the big supermarkets use to make rip-offs look like bargains. Fall for one con - get another one FREE: Every little helps! The very best for less! Everyday low prices! Quality food attractively priced! Listen to our supermarkets' slogans and you might be persuaded that they all compete madly to give price conscious shoppers the very best deal. But do they? Earlier this week, it was revealed that Tesco's 'half-price' fruit and veg promotion in the New Year was not all that it seemed. The price of the produce was doubled for one week, making it twice as expensive as normal, before being cut back to its usual price, thus enabling the supermarket to claim that it was offering a 50 per cent discount. So what other marketing gimmicks and sly pricing strategies do the supermarkets use to fool the customer? Here, Joanna Blythman - a leading food campaigner and author of Bad Food Britain: How A Nation Ruined Its Appetite - explains how its done." Editor's Comments: Doubling the price of sale goods just before the sale is not a new trick. Joanna continues with an explanation of:
THE DAZZLE FACTOR - These are loss leaders, not a new trick either.
FRESH FOOD GOLDMINE - "that's because in these key fresh food categories, supermarkets are nearly always pricier than traditional High Street shops."
THE VITAL ECO IMAGE - organic and Fairtrade products are targeted for high profuit margins because we expect to pay more (at least 36%)
SQUEEZING - two for one, the supermarket is not paying for this, guess who? "In order to be an approved supplier to a supermarket, farmers and food producers are expected to underwrite the cost of any special promotions themselves." "......But if they don't jump to the supermarkets' tune and agree to fund these special offers, the farmer or supplier risks being axed altogether."

SPEND, SPEND, SPEND! - "A staggering 40 per cent of all food bought in the UK is thrown out uneaten. Good news for the supermarket, not good news for their customers' bank accounts." Why, because we are encouraged by the huge display of variety and abundance to buy more than we need.
A NUMBERS GAME - "But there are lots of traps for the unwary. For example, that eyecatching 'Half-price' or '£1 off' banner might relate to the price-per-kilo, rather than the price-per-pack, meaning that on relatively light items, such as spinach, the heavily-promoted reduction is, in fact, utterly insignificant."".........Equally, when you rush to buy those two-for-the-price-of-one punnets of blueberries, you may not notice that the pack size has been reduced from normal - leaving you paying the same price by weight as before, while thinking you've got a bargain." "...........Incidentally, while greengrocers, butchers and fishmongers tend to advertise their prices in kilos, supermarkets specialise in arbitrary pack sizes, like 225 grams.This makes it far harder for customers to work out how much they are paying for what quantity."
CHANGING PRICES - "Supermarkets are allowed to use 'dynamic pricing' - varying prices to take account of different markets.In practice, some supermarkets use this to charge more where they can get away with it - for example, in a more affluent area. Even within one town, a supermarket chain's prices can vary, so a box of cornflakes in one of their city centre convenience stores may well cost you more than if you bought it in their superstore nearby."
THE FEEL GOOD FACTOR - Sales to help the local school? Think again. "For example, last month the Mail revealed how in order to qualify for a 'free' trampoline worth £3,000 from Tesco, parents would have to spend the equivalent of £1 million at the supermarket tills."
THE SHOPPING 'SNOOP' - "Ever wondered why the person at the check-out is so keen to scan your 'customer loyalty card'? It's not because they're desperate for you to collect as many loyalty points as possible. No, it's so the chain can collate information about your shopping habits - where you shop, what you buy, how often and so on. When linked with the personal details you gave them when you signed up for the scheme, this enables them to target you with promotions by post that are tailored around your shopping habits."

This is only for starters.

If you feel inclined to learn how some supermarkets treat their suppliers and the farmer, then have a look at Felicity Lawrence's book "Not on the Label"

I thought I knew all the tricks but this one was a real shocker. Then their is Tesco's vast real estate, Walmart with ASDA Phew.

JOANNA BLYTHMAN is author of Shopped: The Shocking Power of British Supermarkets.