Supermarkets - the Christmas con trick
Headlines such as “Tesco enjoy best Christmas in three years” and “Cut price ASDA slices through the recession” are doubtless heartening to shareholders, but behind the figures lies a more depressing story for shoppers.
“Supermarket giants Tesco and Asda dramatically increased prices on key items in the runup to Christmas in what an independent expert has called “a systematic, cynical and aggressive attempt to exploit demand”, a Guardian investigation can reveal. Batteries, lightbulbs, medicines, Christmas drinks and must-have children’s toys were among essentials whose prices were increased.
Both companies ran marketing campaigns before Christmas and at New Year boasting of thousands of price cuts but many consumers will have been unaware that they were also raising thousands of prices in the same period”. (Systematic, cynical, aggressive’: expert verdict on Tesco & Asda prices. Guardian, Feb. 12th 2010)
While supermarkets are keen to trumpet the price falls in 1000’s of selected Christmas “essentials” The Guardian reports on a third party retail survey (”We used data compiled by third party analysts from the Asda and Tesco online stores to show how many price rises were imposed between December 9 and December 22″) of prices in Tesco and ASDA which reveal 1000’s of price rises between the 9th and 22nd December ‘09. While the price falls hyped by supermarkets often fall into the bracket of a matter of pence, the price rises in the case of ASDA range from 455.5% to a fraction of a percentage over a range of 2059 items, and in the case of Tesco from 158% to a fraction of a percentage over a range of 1578 items.
In the article: “How supermarkets can cut ‘thousands of prices’ but your bills may go up” by Felicity Lawrence, Guardian, Friday 12th Feb 2010, Professor of Retailing Paul Dobson of Loughborough University, who has been conducting a five year study of prices at the big 4 -Tesco, Sainsbury’s, ASDA & Morrisons said: “Retailers are happy to tell us about their price cuts but they forget to tell us about the price rises. We keep hearing about a price war but it’s the most curious price war I’ve ever heard of, where you can’t detect an overall drop in price levels or a fall in profits.”As anyone knows, you don’t make money by being generous. And if you do by appearing to be so, then it’s achieved by sleight of hand.


OS21
IS A GROUP DEDICATED TO PROMOTING THE SUSTAINABLE DEVELOPMENT
OF OSWESTRY IN THE
21ST CENTURY