How do major supermarket chains fare in price competition with other retail outlets?
This is the question that no doubt many an astute shopper will ask in the face of rising inflation.
The Consumer Council today (August 27) unveiled the results of a weekly price survey on a basket of 40 food and household items available at major supermarket chains and other retail outlets in the Sai Ying Pun District.
The survey in its new format is complete with information of retailer names as well as online supermarket prices, and an enlarged basket to include also fresh produce from wet market. It covers one district at a time each week.
It is the first of three initiatives proposed by the Council to further enhance price information transparency in the market, and to provide useful price indications for the reference of consumers intent on savings.
With the expanded survey at a weekly frequency, consumers will be better able to compare the general price levels of a range of commodities sold at major supermarket chains and other retail outlets in an area.
In the analysis were listed the top 10 products with the most price differences found in this survey. Top on the list was Ketchup 340g (from $5.3 to $9.5, or a price difference of 79.2%).
Following closely were: Ketchup 680g (from $10.9 to $17.5, or 60.6%); Canola Oil 900ml ($24 to $36.9, or 53.8%); Clear Chicken Broth 1L ($11.9 to $17.9, or 50.4%); Premium Pork Luncheon Meat 397g ($12.5 to $18.5, or 48%).
The remainders of the top 10 list were: Powerful Cream Cleaner-Lemon Fresh 500ml ($9 to $12.9, or 43.3%); Pure Milk 250mlx6 ($22.5 to $31.2, or 38.7%); Petit Jasmine handkerchief 18 packs ($15 to $19.9, or 32.7%); Blended Sesame Oil 150ml ($10.5 to $13.9, or 32.4%); Canola Oil 900mlx3 ($69.9 to $92.5, or 32.3%).
The survey clearly showed major supermarket chains to possess a distinct advantage of a broad product range but that their prices were, by comparison, mostly less competitive than those of the same products (where available) in other outlets.
Other highlights in this inaugural weekly price survey covering (a) prepackaged food products, (b) household and personal care products, and (c) fresh produce, include:
Prepackaged Food
- A total of 26 items in this category at 7 retail outlets, from major supermarket chains to frozen food and grocery stores across the Sai Ying Pun District, was compared for their prices.
- Considerable differences between the lowest and the highest unit prices were recorded, ranging from 0% to 79.2%.
- Overall, major supermarket chains were generally more expensive but some offered discount incentives for bulk purchase of some products. For example, two supermarket chains offered Ketchup 340g at a discounted price of $10 for 2 items, averaging $5 each, thus much cheaper than the other retail outlets.
Household/Personal Care Products
- A total of 9 items in this category at 11 retail outlets was surveyed, with price differences ranging from 11.6% to 43.3%.
- Price discount incentives in bulk purchase by three supermarket chains, for example, offered Powerful Cream Cleaner-Lemon Fresh 500ml at $22 for 2 items, averaging $11 each; but in this case even after price discount, drugstores were still comparatively cheaper.
- Overall, prices at major supermarket chains were generally higher than those at drugstores as well as some individual grocery shops.
Fresh Produce
- Due to possible variations in the place of origin, quality, size or freshness of fresh produce, direct price comparison is considered not suitable.
- A total of 5 items from stalls (3 to 4) at the Sai Ying Pun Market and the 3 major supermarket chains were included in the survey for reference of consumers.
Results of the weekly price survey are available on the Council's website, its Consumer Advice Centres, and the Public Enquiry Service Centre of Central and Western District Office.
The Consumer Council is planning to launch, by stages, two other price information initiatives - a daily wet market price survey and an online supermarket price portal.