Are you really saving money at the supermarkets?

We Brits enjoy nothing more than a good bargain, and when we see prices knocked down by considerable amounts at supermarkets we often flock to purchase the item, even if we had no intention of buying it originally.

Competition amongst the major supermarkets is fierce at the moment, and every week the big supermarkets seem to be announcing slashed prices on a variety of items in order to entice customers and stay one step ahead of the competition. But just how good a deal are we getting from our supermarkets?

A recent shocking report indicated that whilst some supermarkets were indeed slashing the prices of different products each week some were using a very crafty tactic. One of the leading supermarkets, Tesco, was last year accused of misleading customers over a half price campaign.

At the start of last year Tesco ran advertisements highlighting the importance of eating five a day fruit and veg, and the advertisement went on to state that the supermarket giant would be slashing 50% off the cost of different fruits and vegetables each week to help consumers to afford to be healthy.

However, investigations revealed that the fruit and vegetables that were being reduced in price by 50% had suspiciously rocketed in price just days prior to being reduced. This means that the cost of the fruit and vegetables that were on offer for that week was half of the inflated price rather than half of the normal price, so consumers weren’t getting a great deal at all.

Known as the Tesco Fruit ‘n’ Veg pledge the promotion caused outrage when Trading Standards officers stepped in to investigate. It was found that many of the products that were advertised at half price had been inflated in price just a few days earlier – for example, Gala apples were reduced in price by 50% one week, but just days prior to being reduced the price had been hiked from £1.19 a kilo to £1.99.

Tesco was accused of exploitation over the matter, and this was because of a loophole in the Department of Trade and Industry code of practice in relation to price hikes. On most products a price can only be advertised as discounted if it has been at the higher price for at least 28 days, but fruit and vegetables are exempt from this ruling.

A Tesco official was reported as stating: ‘At Tesco, we’re doing more than any supermarket to make it easy and affordable for our customers to get their five a day. Any suggestion we ramp up prices in order to cut them again is the purest nonsense.’ However, one MP said: ‘This sounds like sharp practice, which is something Tesco has gained a reputation for. It amounts to the deception of customers.’

Further reports towards the end of last year seemed to indicate that the practice was still ongoing, and that many fruits and vegetables were being inflated in price shortly prior to being reduced by 50% as part of the pledge. One supermarket insider stated: ‘This looks like a deliberate attempt to make price savings seem better than they are. It is known in the trade as "price establishing".’

Worryingly it is not just fruit and veg that seem to be the subject of price establishing. One consumer stated that he caught the same supermarket chain out when he was purchasing butter. He stated that he always bought the same butter from the same place for the same price, which was 88p. However, one day when he went to buy his butter there was a two for one offer on it – and the price had been inflated to £1.22, which equated to a sudden 48% rise.

Towards the end of last year hefty fines were imposed on a number of major supermarkets, including Asda, Sainsbury’s, and Safeway over price fixing on dairy products in 2002 and 2003.

The supermarkets were fined a whopping £116 million between them after admitting to illegal discussions over price fixing, which resulted in consumers paying millions of pounds extra for dairy products. Morrison’s and Tesco were also being investigated over the same matter.

All evidence points to the fact that whilst some supermarkets may advertise some real deals and discounts, consumers have to be increasingly wary and need to keep their eyes peeled to check whether they are really getting a good deal or are simply getting duped into thinking they are getting one.

For those that buy the same product from a particular supermarket on a regular basis, it is well worth checking if the price has suddenly jumped if a special offer is advertised on that product.

As a nation of bargain hunters we are often guilty of simply loading items into our trolleys without even glancing at the price, simply because we see a money off sticker or a two for one sticker by the side. However, unless you look carefully at whether crafty tactics are being used the only deal that you will be getting is a raw one.