Tesco has a wider pricing gap between its supermarkets and convenience stores than its rival Sainsbury’s, a new report has found.
According to a major price tracking survey carried out by market researcher ESA Retail, the price gap between the UK’s biggest retailer’s larger stores and its smaller Express format was 10.4% in November.
This statistic is higher than supermarket chain Sainsbury’s 8.4% pricing gap between supermarket and local outlets over the same period.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
ESA Retail reportedly tracked about 1,900 products across the Tesco formats and 2,100 lines in Sainsbury’s.
The research recorded the base price of items and therefore did not factor in Tesco Clubcard or Sainsbury’s Nectar Card savings and promotions.
The research also found the gap widened at both retailers month on month. In October, the gap between Tesco and Tesco Express was 10% while Sainsbury’s Local was 7.6% more expensive than Sainsbury’s supermarkets.
At Tesco, the narrowest price difference between both store formats was 8.8%, in the beers, wines and spirits category.
Sainsbury’s however offered ambient food in its Local stores that was 10.4% more expensive on average than its larger supermarkets.
“With household budgets under increasing pressure, we’re more committed than ever to giving our customers great value at Tesco, whether they shop with us online, in a large store, or in an Express store,” said a Tesco spokeswoman.
They added: “Our Express stores offer a range of extremely competitive own-brand products and we have rolled out Clubcard Prices to all our Express stores.
“This helps millions of customers spend less through their Tesco Clubcard, with Clubcard Prices giving up to 50% off a wide range of products and helping customers collect points for money off their shopping.”
A Sainsbury’s spokeswoman also commented: “There may be price differences between convenience stores and supermarkets.
“This is because our Sainsbury’s Local stores are located in city or town centre locations and their operating costs, for example rent and rates, are higher.”
ESA Retail client service director Antony Francis said: “Whilst one of the key consumer coping methods is to shop ‘little and often’ managing their weekly spend, they have the choice to pay the price of convenience or travel further to find a bargain.”
The news comes as Tesco gives its Clubcard users a pre-Christmas boost with a new revamp of the way it issues its money-saving coupons as the current Clubcard-only app prepares to close in 2023.
