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Asda - tinned goods price increases

28/08/10

  11:53:14 pm, by Value hunter   , 503 words  
Categories: Asda

Asda - tinned goods price increases

Asda have increased the prices of some tinned goods, with the weather going colder and autumn on the way.

Heinz beans and sausage - from 90p up to 99p
These have been over priced for some time now, when the prices started going up a few months back, the credit crunch starting in Nov 2008 is when established analysts (including the respected grocer magazine) questioned the price rises of beans.
With the prices on the commodities markets stable and even dropping, as well as alluminium prices falling, it's difficult to justify why supermarkets are continuing to increase the price to the customer?
Perhaps with this 9% increase (almost three times the rate of inflation) there will soon be a "Sale" on Heinz beans and sausages, where the price will be reduced to what it was previously - some 9% cheaper than Asda have increased it to today.

Heinz soups - from 78p up to 82p (5% increase)
This price increase comes with another typically worrying factor involved. The amount of Heinz soups on display has been reduced, the shelf space given to Asda's own branded soups (which are conveniently more profitable) has increased and the offer is now 5 tins for £2.00
Buying a single tin of Asda's own brand soup, will now cost the customer almost exactly the same price as Heinz soups used to be!

Two examples of preparing for colder weather and harder times financially for many people.
Students going back to university buying supplies, customers moving towards tinned goods as a quick alternative meal in the colder climate, etc.

You would think that a supermarket that advertises to "Save you money everyday" (add an asterix after that slogan, as conditions apply depending on the type of product you buy) would be a bit less profiteering on basic staple goods?

UPDATE:

"Asda said its latest monthly income-tracker poll showed that family budgets continued to come under pressure: families had £7 less per week to spend in July, a 4.2% decline on last year. "These are increasingly uncertain times for millions of families across the UK," added Clarke.

A separate report commissioned by Asda also points to a tough outlook for consumers and warns of a potential spending crunch at Christmas. The Centre for Economics and Business Research thinks that UK families face having the lowest amount of disposable income for two years in the final quarter of 2010. It predicts that disposable income in the final month of the year will be £172 – £5 lower than December 2009 and the same level as December 2008." (source - The Guardian, 17th August 2010 - click for full report)

So if families will find it tough in the coming months and Asda's own commissioned reports show that disposable income is falling, why, if Asda really care about their customers, are they increasing the prices of tinned branded goods that everyone knows, more families buy?

Nothing to do with "Helping our customers save money," and all to do with maximising profits now and offering fake "sales" later in the year, where the price will return to what their customer's would have paid anyway!

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