By Princewill Ekwujuru

LOCAL stores and superstores are locked in an intense battle for consumers’ pockets with price offerings.

However, investigations by Vanguard Companies and Markets, C&M, revealed that local stores (neighbourhood stores and open markets) offer lower prices for most of the products surveyed, helping them to sustain patronage and resist  onslaught by superstores.

Other factors playing to the advantage of local stores are proximity to consumers, communal ties with customers, and credit offerings.

However,  C&M  findings show that price plays a dominant role for most consumers, especially when it comes to food items.   As a result, they spend a lot of time ensuring they get the lowest prices on groceries.

For instance, bargain- hunting consumers spend a lot of time and effort to ensure they get the lowest price from any store they patronise. Hence, they are sometimes willing to travel long distances to stores offering variety and lower prices.

Dominance of local stores in price offerings

The notion before now by consumers was that products sold in superstores were cheaper than products sold in the local stores, but C&M  investigation has shown otherwise.

For example, in neighbourhood stores and open markets, a packet of Lipton yellow label tea is sold for N220 and N200 respectively as against the price range of N230 to N245 in most superstores.

A kilogram of Milo refill pack is sold at N1, 750 and N1,700 in neighbourhood stores and open markets respectively, while the price ranges from N1, 889.99 to N1, 999 in superstores.

Furthermore, Ovaltine 400gram refill pack is sold  for N1,000 and N950 in neighbourhood stores and open markets respectively but in superstores the price ranges from N1,110 to N1,050.

One litre pack of ‘5 Alive’ juice drink   sells for N250 in open markets, but the same pack is sold for between N265 and N270 in superstores.    A 500 gram of corn flakes is sold for N850 and N800 in neighbourhood stores and open markets respectively but it is sold for N860 in superstores.

A 400gram Knorr seasoning pack (containing 100 cubes)   is sold for N600 and N550 in neighbourhood stores and open markets respectively, the same product is, however, sold for N640 in superstores. Ketchup 300gram sells for N400 per bottle in neighbourhood stores and open markets, while in superstores, it goes for betweenN440 andN450.   In the beauty and personal care segment, Imperial leather body wash (500milliliter) which sells for N950 in neighbourhood stores and N850 in open markets but the price ranges from N1,000 to N1,100 in superstores.

Rexona antiperspirant roll for men (50 mililitre) sells for N500 and N550 in neighbourhood stores and open markets, but sells for N560 in superstores. Dettol antibacterial soap (175gram x4) is sold for N400 in open market and N510 in superstores.

Nivea roll-on (50ml bottle) is sold for N500 in neighbourhood stores and open markets, but is sold for N599.99 in superstores. Talc Bouque powder (100gram) is sold for N100 in local stores and N120 in superstores.

Furthermore, a 10kg of Semovita bag sells for N1,850 and N2,000 in neighbourhood stores and open markets while the price ranges from N1,900 and N2,100 in superstores.

Bama Mayonnaise (946mililitres) sells for N1,300 in neighbourhood stores and open markets, but the price ranges from  N1549.99 to N1,550 in superstores.

C&M  also found a huge difference in the price of 400 gram Loya powdered milk refill pack. While it sells for N950 and N900 in neighbourhood stores and open markets respectively, the price  ranges from N1, 100 to N1,105 in superstores. While Rambo insecticide (300mililitre) sells for N600 in local stores, in superstores, it is sold for N660.

Superstores dominate price offerings

However, superstores  offer lower prices for soft drinks. For example, a 1.5-litre PET bottle of Coca-cola or Fanta or Sprite is sold for N179.99 in superstores, but the price ranges from N200 to N250 in neighbourhood stores and open market.

Other items cheaper in superstores include Devon King vegetable oil (5 litres) which goes for between N3,230 and N3, 600 in superstores across Lagos, but sold between N3,800 and N4,000 in neighbourhood stores. Also superstores sell Mr Chef Salt at N45 while local stores sell it at N50.

Consumers speak

Confirming the result of the price survey above, most of the consumers that spoke to  C&M said that local stores offer lower prices than superstores.

According to a consumer, Mohammed Ishola who resides in Mangoro area of Agege, Lagos State, said: “Since the superstores came into being, I do not think I have bought any commodity around my house, this is because I work in Ikeja where these superstores are located. I prefer coming here with the belief that the prices are okay, but to my surprise, I noticed that the products are not that cheap after all.”

Anthony Ibekwe, a consumer who resides in Ajegunle, Ajeromi Local Government Area, Lagos State said he was carried away by the ambience of the superstores. “It was just recently that I noticed the price differences in the items in superstores and local stores, what I do now is buy items I think are cheaper in local stores and sometimes buy from superstores when I cannot go down to the local market, even though I know I am buying at higher price.”

Some consumers, however, believe that superstores offer lower prices when it comes to some items. According to Ofurum Ijeoma, a restaurant operator at Iyana-school bus-stop, Isasi, Lagos, a bottle of beer depending on the brand is cheaper because the content is sold along with the bottle, but local stores sell content only.

Similarly, Moji Ajayi, a businesswoman at Iyana-Ipaja market stated: “Notwithstanding the low price in local stores, some grocery items are still cheaper in superstores. For instance, Always platinum ultra (16 pieces) goes for between N800 and N850, but in neighbourhood stores and open markets, it is sold for between   N900 and N950.”

Another customer, Mrs. Funmilayo Ariyo, a civil servant said she is aware of the differences in prices, but believes superstores offer higher quality products and hence customer satisfaction.

“With products sold here (superstores), I do not think I have to fret or fear about quality. You know there are many substandard and inferior products out there. Because of its brand, most of us have come to believe in the things sold here,” she said.

This notion was, however, countered by another consumer, Philip Ojemba, a businessman at Balogun Business Area, Lagos-Badagry Expressway, Lagos, said he once bought a product from an outlet in Ikeja only to find out that it had expired. “Since then, I ensure that whatever I buy from any of the superstores, I check very well,” he said.

Company’s response

A staff in one of the superstores,   who spoke with C&M on condition of anonymity said the prices   of products   depend on the supplies at every point in time.

He said:   “We can sell a product for a price today and by tomorrow, when the company manufacturing it supplies us; they give to us at an increased price. In that case, we would have to amend the prices of the commodities like it happened recently.

“Remember also that we pay rent, tax and other rates. The government cannot say because we sell at cheaper rates, it would collect lower taxes from us. So these things count.”