News
The article is more than 12 years old

Shopping local may burn a hole in consumer pockets

A sizable discrepancy in grocery costs exists across different stores in central Finland, reveals an Yle study. The research shows that consumers could be paying over 30 percent more for basic staples if they shop in the more expensive food stores or happen to live in region with higher prices.

Kaupan juustohylly.
Edullisen hinnan lisäksi kuluttaja arvostaa myös kaupan tuotevalikoimaa. Image: Jarkko Riikonen / Yle

The study surveyed around twenty grocery stores in five locations in central Finland, examining at least two in each region.

The standard shopping trolley of goods used for the comparison included breakfast supplies for a family of four, such as coffee, cheese and yoghurt, as well as the supplies needed for cheap and cheerful Finnish favourite macaroni casserole (makaronilaatikko). The comparison did not take into account promotions and bonuses.

Some pay more for the basics

The lowest-priced shopping locality in the sample proved to be Viitasaari, with Joutsa and Petäjävesi at the priciest end of the spectrum. The difference between least and most expensive was more than six euros, meaning the most expensive shop placed almost a third more strain on the back pocket of shoppers.

The comparison included three large chains of S and K Group stores and Lidl stores. German owned budget food chain Lidl came out cheapest.

Juha Munnukka from Jyväskylä University’s School of Business and Economics explains that, in general, gaps in pricing between stores are affected by three factors: differences in cost and sales volumes, differences in competition – both locally and in neighbouring countries - and differences in pricing traditions.

However, he says that price is not necessarily the deciding factor it’s commonly thought to be.

“If you ask the consumer, price is a very important factor,” says the senior marketing assistant. “But several studies have found that the choice of location is actually even more important.”

Latest: paketissa on 10 artikkelia

The state alcohol retail monopoly is extending Saturday evening hours at about one-third of its stores, with roughly one in 10 opening on Sundays as well.

Defence Minister Antti Häkkänen (NCP) says that the new version of Saab's RBS 70 system will ensure protection of broader areas of Finland.

The deal means MTV's channels should re-appear automatically on Elisa's Viihde platform and TV cable offerings on Friday, without customers having to do anything themselves.