Has Tesco got so big that it does not care about PR or charging one price?

There was a report on the Guardian website a couple of days ago about someone who was almost thrown out of a Tesco store for attempting to compare prices on the shelves. He had noticed a bizarre piece of pricing in which it was more expensive (per bottle) to buy Highland Spring water in 4-packs than in lesser quantities: the opposite of what a casual shopper would assume.

This is something I had noticed myself. There was a surreal period where, at my local Tesco, it was significantly cheaper to buy four individual cans of Red Bull than to buy a 4-pack of Red Bull – the opposite of what you would expect. No special offers were involved; this was the normal, everyday price.

In the case of the Guardian reporter, when he was seen on the Tesco security cameras to be standing by shelves writing down something on a piece of paper, the store’s deputy manager approached him and, when told he was “writing down prices”, responded:

“You’re not allowed to do that. It’s illegal… It’s illegal to write things down and you can’t take any photographs, either. If you want to check the prices, take the item to the till and pay for it there. The price will be on the receipt.”

The store manager told him the same thing.

I thought this might be a quirk. But, when I posted a link to the Guardian article on my Google+ account, someone responded:

“I got escorted from Tesco for taking a snap of price tag on my phone. The same thing – item packed in bulk was 100% more expensive than buying four separate items.”

Someone posted on the Guardian website:

I saw a splendid offer there the other day, some revolting looking snack, 20p each or 4 for a £1.00…

And someone else posted:

Recent gems include:
Fruit squash: £1.35 a bottle or 2 for £2.75
NCG soups: £1 or 2 for £3.00
Bread: £1 a loaf or 2 for £2.00.

There are two things here.

What on earth are Tesco doing with their pricing policy? Occasionally you see TV ads claiming Tesco prices are cheaper than their competitors; and they put prices online. But the company has no actual single price throughout the country – or even in the same neighbourhood. Smaller Tesco Metro stores already routinely charge more for items than larger Tesco stores.

I live in Borehamwood in Hertfordshire. The Tesco store there charges lower prices on everyday items than the Tesco Metro in Radlett, three miles away in the next small town.

Tesco has no uniform pricing. Although it buys in bulk at a set price, it does not sell at a set price and is taking different profit margins from customers in different areas and even at different stores within the same area.

Its TV ads, which quote specific prices for specific products, wrongly imply that there is a single standard price for all items at Tesco. There is not. You go into a Tesco store, you take pot luck on what you pay.

And what’s with this surreal leaping on anyone who dares to attempt to write down the prices in their stores?

Tesco has got so big it appears to have lost control of itself.

1 Comment

Filed under PR, Shopping

One response to “Has Tesco got so big that it does not care about PR or charging one price?

  1. It’s not complicated. It’s probably to do with stock rotation. If they have lots of “singles” and not many “4-packs” they will sell the singles cheaper per unit to move them on. They are all about manipulating your buying habits while giving the illusion of choice.The nature and scale of supermarket retail is such that if they just took 50 quid off of everyone and said “help yourself” – it would probably still work as a business model.
    As for stopping people comparing prices, i would totally challenge them on that. They do have the right to remove you without reason of course, but I’d rather they had to resort to THAT than let them away with using a lie i.e. “it’s illegal”.

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