The Competition and Markets Authority has responded to a super-complaint with little more than a telling off, says Verdict’s Andrew Stevens.

The call to investigate was well founded – the activities of the grocers and their pricing strategies are well documented, and investigations into the topic appear on consumer television programmes on a semi-regular basis.

There is no denying that shrinking pack sizes, buy-one-get-one-free offers that don’t result in a saving and a lack of clarity between unit and pack pricing are present.

“In the small number of cases where an offer may be misleading it is as likely to be a mistake as it is intentional”

Andrew Stevens, Verdict

However, the CMA has found that these problems are rare, and rather than reprimanding the culprits, it has encouraged consumers to look at unit rather than pack pricing, and has asked that the Department for Business, Innovation and Skills produces best practice guidelines for retailers.

A light punishment for the grocers indeed.

Changing landscape

The Which? super-complaint is based on investigations the consumer group has made since December 2008, and this is the crux of the problem.

While these practices have been ongoing, the structure of the grocery market in the UK has changed significantly since then, and even in the past two years, the way the mainstream grocers approach pricing has evolved from being highly promotional to offering low prices on everyday items.

With the growing presence, and as a result acceptance by consumers, of the discounters, the mainstream grocers have had no choice but to react with this simpler pricing strategy – and as such the issue is largely resolving itself.

In the small number of cases where an offer may be misleading, or leave a consumer out of pocket, it is as likely to be a mistake as it is intentional.

Wiser consumers

These retailers need to maintain tens of thousands of prices, and on top of that multiple pack sizes of the same product, so it is no wonder that some will slip through the net. Yes, they should be more diligent, but it is far from a great grocery swindle.

What happens when the current price war comes to an end? If they revert back to the promotional practices of old, the chances of consumers being stung by a counterproductive BOGOF increase and there is every chance we will see further investigations into these practices.

However, consumers have clearly wised up and what is more important to them today is fair and honest value for money, rather than flashy promotions. As such, simpler pricing will continue and the guidelines issued to the retailers will have an impact as a reminder not to return to the past.

  • Andrew Stevens, senior analyst, Verdict

Senior Analyst

Senior Analyst

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