Tesco pricing differences, in same town

brightonman123

Jamesons whicky £18.38 in local 'Express' store (gone up a couple of quid, since I last bought one..)

- though only £15.00 in the main 'proper' tesco store, a mile or so away?

its the same brand, size etc..

so why such a big difference? eh eh?
:mad:

purt

Tesco has a specific pricing structure. Prices will always differ between its Express, Metro, Main and Extra stores. Why I'm not quite sure.

Darksun

Some special offers can be just at one store, I think managers have some discretion in pricing.

Plus you generally pay more in 'convenience' stores, so that could be why it's more expensive in the express

UK2010

Cost of land/rent is the main reason for difference in price.

oldone_2

The worst example I came across was when I called into a Morrisons garage for some petrol. I picked up a 2 litre bottle of coke, only to be told that I would be charged full price, but if I stepped across to the store (all of 20 feet), it would be on offer at half price.

jdturk

brightonman123 wrote: »

Jamesons whicky £18.38 in local 'Express' store (gone up a couple of quid, since I last bought one..)

- though only £15.00 in the main 'proper' tesco store, a mile or so away?

its the same brand, size etc..

so why such a big difference? eh eh?
:mad:

Economies of scale, a smaller shop has a smaller range and their costs as a percentage of their revenue is likely to be higher than a large superstore so their prices need to be higher to cover these costs.

Enfieldian

The Express stores never seem to stock much own brand stuff either, just the most expensive named make.

Don't know why I am complaining though. Most of their OB stuff is carp.

DCFC79

The smaller stores have higher overheads i bet so have to charge more, ive only been in a few tmes and i cant say ive seen alot of offers in the store

Pound

culchied wrote: »

Tesco has a specific pricing structure. Prices will always differ between its Express, Metro, Main and Extra stores. Why I'm not quite sure.

I think it's to do with the type of customer. Metros especially being based in city centres will attract customers with plenty of disposable income but the weekly shop supermarkets will attract people looking for the lowest prices.

UK2010

Pound wrote: »

I think it's to do with the type of customer. Metros especially being based in city centres will attract customers with plenty of disposable income but the weekly shop supermarkets will attract people looking for the lowest prices.

That will happen but then main reason is overheads. Bigger stores are built on cheaper land. Smaller stores will have higher land/rent costs. Tesco even employes people to look for cheap land to buy so they can build stores. I've heard they even buy land near their stores so competitors can't build near them!

brightonman123

each store doesnt order their own stuff, direct, do they? i am sure Tesco HQ must buy in bulk, and get damn good prices across the board - regardless of size / location..?