Same brand, same weight, different price: UAE shoppers find grocery costs vary between branches of the same store

Dubai: Some consumers have discovered that goods bearing the same brand, category and weight, are experiencing price variations between branches of the same store. They added that the price of the same item differs between one branch and another of the same retail store, in values ranging between Dh1 and Dh2.5 per package, even though those branches are supposed to follow a unified management and pricing system. Retail officials said that some stores adjust the selling price of the same item between their branches for reasons related to profitability policy and differences in operating costs between branches and their locations. It was observed through data from the UAE Essential Goods Prices Platform, launched by the Ministry of Economy and Tourism, a difference in prices of the same commodity between branches of the same store, and this included products of different brands of white rice, sugar and cooking oils. The platform showed a well-known retail outlet offering a 4kg package of sugar from the same brand for Dh23.5, while another branch offered the same package of sugar for Dh21.99. A retail outlet also offered a package of sugar (weighing 1kg) for Dh6 in one of its branches, while offering it for Dh5.75 in another branch, even though it was the same product, with the same weight and brand. The platform's data also revealed that a well-known retailer was offering two bottles of corn oil (1.5 litres each) for Dh53.95, while another branch was offering the same item for Dh51.95. A branch of a well-known retail chain also offered Indian-origin white Basmati rice, weighing (1 kg), at a price of Dh17.75, while the same item was offered in another branch of the store for Dh17. The data also showed that one branch of a well-known retailer offered a 5kg bag of basmati rice for Dh57.99, while another branch offered it for Dh57.5. Similarly, a retailer offered a 750ml bottle of canola oil for Dh15.75 and Dh15.50 in two different branches of the same store. Consumer opinions Consumer Youssef Hamad said: “I used to buy food products from one of the famous stores, but I was surprised when I went to one of the store’s branches in another area, to find a difference in the prices of the goods that I used to buy, even though they do not differ in terms of weight, type and brand,” noting that the price differences reached about Dh1.5 per package. For his part, consumer Ahmed Kamal said: “Some major stores with multiple branches change the prices of goods according to their branches in different areas.” He added that he noticed price differences of one or two Dirhams for similar items between branches of these stores, which increases the total cost of purchases. For his part, consumer Salim Hamdi expressed surprise at the significant price variations for the same item depending on the store's location. He stated: "Stores bearing the same brand should have uniform prices, especially since there are no differences between the products offered that justify such price discrepancies." He pointed out that these differences, reaching approximately Dh2.5, inflate the final cost of shopping bills without any clear or logical justification. Operating costs Meanwhile, Ashwin Deepak, a sales manager at a retail store, said that “the difference in the price of goods according to the branches of the stores is due to marketing policies that differ between one store and another, and depend on varying profit margins, according to the region in which the branch is located, and the consumer categories present in those regions.” He added: “Consumers should be aware of these practices when shopping, especially given the increased shopping options among retail outlets that allow choosing between lower-priced outlets.” Dilip Vishal, a sales manager at a retail store, said: “There are individual practices by some well-known stores that change the prices of goods according to the areas where their branches are located. This is due to the marketing policies of those outlets and their calculation of operating costs, especially rental values, according to those areas.” He continued: “The prices of the same item should not vary between branches, but the cost of rent and operation may affect the prices of some items.” In the same context, retail trade expert Ibrahim Al-Bahr said that “the difference in prices of goods between branches of the same store is one of the practices that the consumer may be exposed to and does not notice until reviewing the invoices,” stressing that “these practices require increasing consumer awareness and comparing prices even between branches of the same store that he is accustomed to buying from.” He added: “At times, stores may target specific profit margins that may require price changes, depending on the branches and consumer patterns in each region.”