Supermarkets bump up prices

Everyone thinks supermarkets are cheaper than corner shops.

But the big chains are risking that reputation by raising prices in their new, convenient city-centre stores by as much as 25 per cent.

Researchers compared the prices of a typical basket of goods at Sainsbury's Local, Safeway Compact and Tesco Metro stores with the prices at their out-of-town equivalents.

They found a surcharge of nearly 10 per cent at the checkouts of the city-centre shops, with the prices of some items up to 25 per cent higher.

The price of a can of Lynx body spray - £1.90 in a Safeway supermarket - leapt to £2.39 in one of its new citycentre stores. Pringles cost 17p more in a Sainsbury's Local than in one of their big stores, and a carton of Tropicana juice cost 7p more in a Tesco Metro than in the supermarket.

The National Consumer Council said: "Shoppers will be surprised that some supermarkets have one price in a big store and a different price in a smaller store. The supermarkets are trading on their name to attract shoppers into their smaller branches, but appear to be hiding the real cost of shopping there."

The mini-supermarkets were pioneered in London - the first Tesco Metro opened in Covent Garden in 1992 and the first Sainsbury's Local in Hammersmith in 1998 - but are now a fixture of high streets countrywide.

There are more than 500 in Britain, including 167 Tesco Metros and 120 Sainsbury's Locals. London's 13 Safeway stores are being rebranded Safeway Compact following the takeover by Morrisons.

But these interlopers have come under fire for threatening the viability of traditional corner shops. Sandra Bell, food and farming campaigner for Friends of the Earth (FoE), said: "The big supermarkets are returning to the high street by buying up convenience stores. This is bad news for independent shops that find it hard to compete against the retail giants."

That domination may explain why roughly one fifth of local shops and services were lost in Britain between 1995 and 2000.

FoE said: "Key items such as bread and milk are certainly cheaper in supermarkets because they are used as 'loss leaders' to entice customers into the store. But not all products are so cheap.

"A comparison of fresh produce shows you can often get it cheaper at a local store. Our survey of apple pricing showed that a kilo of Cox apples cost 43p more in a supermarket than on a market stall."

The supermarkets admitted they charged more at some of their "convenience" stores but said their overheads were higher. A Sainsbury's spokesman said: "It is not relevant to compare convenience-store prices with main format stores as their cost structures are completely different."

A Safeway spokesman said: "Compact stores are exceptional because of their format, size and location. They operate differently, retaining a convenience store pricing structure."

Tesco said prices were higher in only a handful of Tesco Metros.