Supermarkets, why are some branches dearer than others?

Question

A supermarket's city centre branch, in Bothwell Street Glasgow, has the cheek to charge a minimum of £1 more on wine than its counterpart out in the retail park in Partick in Glasgow, and please if you are going to mention rates don't bother, same with passing trade. Does anyone else feel that supermarkets"hypnotise" you into shopping under the one roof, rather than really offer the same value from branch to branch; and why oh why do we fall for it? Bring back the local trader.

Answer 1

Supermarkets examine very carefully the sites they choose and assess the financial potential of each in relation to the local population and the other shopping facilities near by. We have four branches of a well known major supermarket in or by our town, and one of them in a less affluent area definitely has cheaper prices than the others. The small "drop in" or "express" ones are more expensive too, because they bank on people popping in for things they are in urgent need of, and they have the customers over a barrel. It is all very clever marketing to attract a specific kind of customer and make the most profit from those who are unable to shop around or cannot be bothered to do so.
I try to play them at their own game, buy products which I want when they are on special offer and refuse to be tempted by pricey items. I am lucky to have three different supermarkets near by and time to whip around to find the most advantageous price or reduced items which are reaching their sell by date. But I really feel sorry for less fit people who have neither the wherewithal nor the courage to do the same. For some there is no alternative: they catch the "free" bus and have to buy everything under one roof once a week. Others buy on the net, and get things delivered but do not benefit from any special offers and have to spend above a certain amount not to be charged for delivery. It is not just the customers who are manipulated, the local suppliers are as well and many have their back to the wall and barely make a decent living out of what they sell to the supermarkets, dairy, fresh vegetable and fruit farmers in particular. No wonder the big names are doing so well, and the corner shops run by local traders are being elbowed out: they cannot compete.

Answer 2

Yes, like every other store in the nation, they charge what the traffic will bear. In a more afluent area, things will cost more.
And some "branches" are not really branches at all , some are franchises and are independently owned, so they can mark down what they want. or not. And it depends on the competion. If rival groceries are near, with cheaper prices, you will see cheaper prices at the other store, too.
Just 17 miles away, across the state line, groceries are significantly higher. I shop for groceries at home. Gas and cigarrettes are much chepaer across the river, guess where I get them?!
Here in my town there are two same name grocery stores just 2 miles down the road from each other. One is higher priced. You guessed it, it is near the big houses, the other is in the middle of a much poorer neighborhood, and there are 3 discount grocery places between the two. all of them are closer to the cheaper store, and two of them are across the street from the cheaper store. I'm sure that factors in, too.
Yes, we fall for the hypnotism thing. It is convenient to shop at just one store, the closest one, usually, or the easiest to find parking, or the one nearest to everything else we need.
Here is a thought: personal care items, like shampoo, are very expensive at the grocery, yet people buy them there. Why? So they can get everything at one store. One stop shopping. And I fall for that, too. I needed cream rinse, and another item. and I went where the other item was on sale, and took advantage of the close to the door parking. I paid $1.50 more for it at the good parking store, but saved on the other item. I did not want to drive another mile for the cheaper cream rinse, and the other item, and walk a mile in from their parking lot, or get in and out of the car to buy them at 2 stores. My total bill would have been cheaper just going to the other store, and even less if I went to both.
Another thing the stores do is "loss leader". they mark an item or two at a ridiculously low price, just to get you into the store, and figure you will stay there and buy the rest of what you need. For example, they might mark a cheese down, knowing full well that the crackers to go with it are higher priced than anyone else in town, and you will need the crackers. And of course, you will need the wine to go with that, and the kids need some milk...Cheeky, and sneaky.
Hope I answered your question.

Answer 3

Well where I used to live in Sydeny, our suburbian supermarket was cheaper than the same one in Sydney city.
I guess living in the suburbs, like 45mins from the centre is a cheaper place to live.
The more affluent suburbs on the north shore are also more expensive for groceries, maybe they think they can afford it, so why not.

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Answer 5

They charge what they think they can get away with.