Why would you pay 10% more than necessary for a jar of peanut butter or a pack of washing powder? Yet consumers do that. Convenience is probably the most important reason, because doing all your shopping at a supermarket is faster and easier. And more expensive. The price differences between supermarkets are quite large, according to research by the Consumers’ Association. The price differences are up to 32%. So a trip to another supermarket is probably worth it. Nettorama is the cheapest. The Consumers’ Association did shopping at 66 stores of 19 supermarket chains and compared 14,000 prices of 300 products. This showed that the prices of private labels can differ by 32%. If we do not include the cheapest supermarkets Aldi and Lidl, the difference is still 22%. The greatest profit can be achieved when purchasing private labels. This saves a quarter (24%) on groceries compared to the same products from A-brands. The same A-brand product also costs 10% more at the most expensive supermarket than at the cheapest.
Prices vary within the same group
The research also shows that prices within the same supermarket group can differ. For example, the prices at Jumbo are not the same in every branch. It turns out to depend on the competing supermarket in the area. If there is an expensive Albert Heijn in the same street, the Jumbo is more expensive than the branch that has a cheap Nettorama as a neighbor. One Jumbo is therefore more expensive than the other.
Differences between house brands
Of all products sold in the supermarket, 28% are private label. That share is increasing, according to the Economic Bureau of ABN Amro. House brands are AH, Jumbo, C1000, Perfekt and Markant. Several supermarkets use the Perfekt brand as their own brand: Nettorama, Deen, Hoogvliet, Boni, Jan Linders and Poiesz. But beware, between these supermarkets the differences between the prices for the same Perfekt products are up to 20%. Of the house brands, those from Coop (Markant) are the most expensive, followed by Plus, Poiesz and Albert Heijn.
VAT increase
The VAT rate of 6% applies to food products, but for household products, drugstore items, animal feed and alcohol, the rate has risen to 21% from October 1, 2012. The supermarket chains Lidl, Aldi, Vomar, Dirk, Nettorama and Deka have announced that they will not pass on this VAT increase for the time being. But ultimately the consumer will pay for the increase. The ING Economic Bureau predicts that an average household will spend approximately €330 more in VAT annually.
Price differences Private brands* from expensive to cheap:
|
Supermarket (house brand) |
Percent above average |
|
Coop (Markant) |
10%-12% (= more expensive than average) |
|
Albert Heijn (AH) |
8%-10% |
|
MCD (Markant) |
8%-10% |
|
Plus ((Plus) |
8%-10% |
|
Poiesz (Perfect) |
8%-10% |
|
Jan Linders (Perfect) |
6%-8% |
|
C1000 (C1000) |
4%-6% |
|
Jumbo (Jumbo) |
0%-2% |
|
Dane (Perfect) |
-0%-2% (= cheaper than average) |
|
Boni (Perfect) |
-4%-6% |
|
Dirk vd Broek (1stBest) |
-4%-6% |
|
Deka (1stBest) |
-4%-6% |
|
Vomar (Markant) |
-4%-6% |
|
Hoogvliet (Perfect) |
-6%-8% |
|
Nettorama (Perfect) |
-10%-12% |
Price differences from A-brands* from expensive to cheap:
|
Supermarket (house brand) |
Percent above average |
|
Coop |
5%-6% (= more expensive than average) |
|
MCD |
4%-5% |
|
Albert Heijn |
2%-3% |
|
Plus |
2%-3% |
|
Poiesz |
2%-3% |
|
C1000 |
2%-3% |
|
Jan Linders |
0%-1% |
|
Dane |
-1%-2%(= cheaper than average) |
|
Vomar |
-1%-2% |
|
Deka |
-2%-3% |
|
Jumbo |
-3%-4% |
|
Boni |
-3%-4% |
|
Dirk vd Broek |
-4%-5% |
|
Hoogvliet |
-4%-5% |
|
Nettorama |
-4%-5% |
*Measured in September 2012