The Co-operative Group is charging customers inconsistent prices for brands, The Grocer can reveal. A snapshot study by The Grocer found prices for brands varied by as much as 20% in society-owned stores, including shops on the same street in a town.
The Grocer bought six random lines from a The Co-operative store in Reigate: two-litre Coca-Cola £1.65; 500g Kellogg’s Crunchy Nut Corn Flakes £2.39; white Hovis £1.24; 40 Tetley teabags £1.28; Heinz Ketchup Top Down £1.65; and six Mr Kipling Country Slices for £1.55, bringing the total to £9.76. The same products were then purchased from a The Co-operative across the road. Despite being a similar size, this store, recently refurbished from the Alldays fascia, charged £10.46 – 70p more. The teabags and ketchup were the same but Coke was 34p more, cereal 22p more, Country Slices 10p more and bread 4p more.
Further research by The Grocer found the higher prices at the former Alldays store were the same as at two other Co-op Group-owned stores still operating as Alldays in Horsham and Ashtead. However, a Co-op Welcome in Horsham also charged 4p more each than the first Reigate store for Coke and Country Slices.
“Most retailers are prepared to take advantage of different competitive situations,” said one analyst. “However, if the co-ops opposite each other are the same sorts of stores, that suggests poor controls.”
A Co-op Group spokeswoman added: “Like most retailers, we operate a number of price bands that take account of store size and operating costs, as well as local competition.”
The Grocer bought six random lines from a The Co-operative store in Reigate: two-litre Coca-Cola £1.65; 500g Kellogg’s Crunchy Nut Corn Flakes £2.39; white Hovis £1.24; 40 Tetley teabags £1.28; Heinz Ketchup Top Down £1.65; and six Mr Kipling Country Slices for £1.55, bringing the total to £9.76. The same products were then purchased from a The Co-operative across the road. Despite being a similar size, this store, recently refurbished from the Alldays fascia, charged £10.46 – 70p more. The teabags and ketchup were the same but Coke was 34p more, cereal 22p more, Country Slices 10p more and bread 4p more.
Further research by The Grocer found the higher prices at the former Alldays store were the same as at two other Co-op Group-owned stores still operating as Alldays in Horsham and Ashtead. However, a Co-op Welcome in Horsham also charged 4p more each than the first Reigate store for Coke and Country Slices.
“Most retailers are prepared to take advantage of different competitive situations,” said one analyst. “However, if the co-ops opposite each other are the same sorts of stores, that suggests poor controls.”
A Co-op Group spokeswoman added: “Like most retailers, we operate a number of price bands that take account of store size and operating costs, as well as local competition.”
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