Supermarket Promotions and Food Prices: A Note

Authors: Lan, C.W.

http://eprints.bournemouth.ac.uk/22617/

https://www.scopus.com/inward/record.uri?eid=2-s2.0-84928210651&partnerID=40&md5=868e96e68fc6909db31725bdefe21d90

Journal: Journal of Agricultural Economics

Volume: 66

Pages: 555-562

DOI: 10.1111/1477-9552.12096

This data was imported from Scopus:

Authors: Lan, H., Lloyd, T. and Morgan, C.W.

http://eprints.bournemouth.ac.uk/22617/

Journal: Journal of Agricultural Economics

Volume: 66

Issue: 2

Pages: 555-562

eISSN: 1477-9552

ISSN: 0021-857X

DOI: 10.1111/1477-9552.12096

© 2014 The Agricultural Economics Society. Using a sample comprising nearly 250,000 weekly prices from the largest seven UK supermarket chains, this note investigates two pricing practices that have attracted public interest: the tendency for promotions to 'disguise' rises in non-sale prices and the inflation of prices prior to sales which 'exaggerate' the discount. Analysing price dynamics before and after periods of promotional discounting results show post-sale prices are typically lower than pre-sale prices, contrary to the disguise hypothesis. We do, however, find evidence of exaggeration of the discount, which may potentially explain why prices fall after discounts, although the evidence is not sufficiently widespread for this to be the sole cause. Results parallel the competition authority's view of supermarket promotions and point to the useful contribution that retail price microdata might play in keeping prices in check in countries where highly concentrated retail sectors raise similar concerns.

The data on this page was last updated at 05:17 on May 25, 2020.