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SHOPPING

REVEALED : Are ‘discount’ supermarkets in Switzerland really cheaper?

Lidl, Aldi and Denner claim their prices beat those of large Swiss retailers. But is this really the case?

REVEALED : Are ‘discount’ supermarkets in Switzerland really cheaper?
Shopping survey reports surprising findings. Photo: Tara Clark on Unsplash

Common consumer goods (except one) are typically more expensive in Switzerland than in neighbour countries — sometimes by much.

This includes food.

READ ALSO: Why Switzerland is the most expensive country in Europe

That is especially the case of largest Swiss chains, Migros and Coop, while Denner, Lidl, and Aldi say their food prices are significantly lower.

To find out whether this claim is actually true, journalists from RTS public broadcaster’s consumer programme went shopping in each of these supermarkets. 

They purchased the same 30 products in each of the five supermarkets on the same day, to ensure that the price comparison is as accurate as possible.

Not what you’d expect

In each of the stores, the investigators purchased only the lowest priced items from the supermarkets’ budget lines.

It turned out that most money was spent at Denner, widely considered to be one of the lowest-priced supermarkets.

The total for the 30 items came to 181.67 francs — more than was spent at the country’s more expensive stores, Migros and Coop, where identical basket of goods cost 170.37 and 167.82 francs, respectively.

(That, in itself, is surprising as well, because Migros typically has lower prices than Coop).

As for the other two supermarkets, these purchases cost 166.59 francs at Aldi and 162.05 at Lidl.

So the difference in price between Migros and Coop versus Aldi and Lidl is minimal. But what is even more surprising is that the cost of groceries at ‘cheap’ Denner is actually highest of the lot, by between 11 and nearly 20 francs.

Migros and Coop performed quite well in the comparison survey because most of the items purchased in those stores came from their budget lines, M-Budget and Prix-Garantie, respectively, both of which were introduced to compete with Aldi and Lidl.

But how important is price? Patrick Krauskopf, a professor of anti-trust law, told RTS: “German, French, English, Spanish and American consumers pay a lot of attention to price. In Switzerland, consumers place more emphasis on quality of service. Price is almost secondary.

“Distributors have realised this and have stopped competing fiercely on price.”

Big versus small

While this particular analysis focused on supermarket chains, another survey, conducted at the end of 2023, looked at prices in small grocery shops. 

Common logic has it that it is cheaper to shop in supermarkets than a local corner store, because big retailers purchase products in large quantities, which means lower prices for consumers.

However, prices in some local shops were found to be “up to 30 percent cheaper than Migros and Coop.” 

The reason is that in order to cut costs, small grocers may buy their products from the most cost-effective suppliers, a tactic which includes importing some items.

Another reason for lower prices is that unlike major supermarkets, which ‘pretty up’ their stores for better presentation of products, these small retailers are ‘no-frill’ shops. This means little money is invested in décor, so there are no extra costs to pass on to consumers.

 READ ALSO: Why it might be cheaper to avoid the big supermarkets in Switzerland
 

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COST OF LIVING

‘It is deceit’: Are Swiss retailers shortchanging consumers?

You may or may not have noticed it when you shop, but many products in Swiss supermarkets have got smaller, while their price has remained the same. What is this about?

‘It is deceit’: Are Swiss retailers shortchanging consumers?

The simple answer to this question is ‘shrinkflation’, which happens when consumers receive less product for the same price.

These products have ‘shrunk’ either in terms of weight or volume, but the price remains the same.

To be fair, this phenomenon is prevalent in many countries, and not just in Switzerland.

Now a new analysis carried out by a Foundation for Consumer Protection (SKS) jointly with public broadcaster SRF, shows how large Swiss distributors like Migros and Coop play their part in this practice.

Many price increases are so subtle that shoppers may not even notice them, according to SKS head Sara Stalder.

“Retailers like to publicise price reductions, but increases are very well concealed,” she said.

“In the criminal sense it is not fraud, but it is certainly deceit.” 

Size matters

So which products have been hit by shrinkflation? These are just some of the study’s findings:

Kiri cream cheese

A pack has lost weight: from 160 to 144 grammes, to be exact, while its price hasn’t budged, which means an 11-percent price increase.

Margarine

The study focused on the Becel brand, the tub of which is now 25 percent smaller.

However, it costs the same as before — which also translates into an 11-percent price hike.

Frozen fish

Although it still costs the same, a pack of Bordelaise-style fish filet from Findus sold at Manor supermarkets now weighs 400 grammes — 20 grammes less than previously.

Tampax tampons

Instead of 22 tampons per pack, there are now only 20 for the same price, which means consumers now have to pay 10 percent more for this product.

But the shrinkflation phenomenon doesn’t only reduce the size of the product sold in supermarkets; it also means manufacturers resort to using cheaper raw materials to cut costs.

One such example are Milka biscuits, which were previously made with sunflower oil, but now the less expensive palm oil is used in the production process.

This kind of ingredient switch “is common,” Stalder said.

Can consumers do anything to counter shrinkflation?

There is at least one instance where consumers were able to force the manufacturer to backtrack.

A few years ago, Coca-Cola bottles were downsized,  from 500 to 450 millilitres, while the price stayed the same.

Faced with a massive criticism, the company backed down and re-introduced the ‘old’ bottles. 

And retailers can have a say too.

For example, Migros and Coop which, like Manor, also sell Bordelaise fish, adjusted its price downwards when the weight dropped.

“This shows that lower prices are possible,” Stalder said. “Big retailers are more powerful than they pretend. They can negotiate better prices.” 

READ ALSO: What will be cheaper and more expensive in Switzerland in 2024?

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