September 18, 2012

Supermarket goods are four times costlier than online, says study

High street prices are at least four times higher than online prices, finds a new study jointly carried out by internet service provider TalkTalk and the Centre for Economics and Business Research.

By admin-demo

High street prices are at least four times higher than online prices, finds a new study jointly carried out by internet service provider TalkTalk and the Centre for Economics and Business Research.

The study observed this trend to be more prevalent among popular goods, where the items displayed in shops are priced more than 350% higher than on the internet.

A huge disparity was found in the price of DVDs, CDs and video games, Daily Mail reported citing the study.

After reviewing about 50 randomly selected goods, the study revealed that the average high street prices for entertainment products stand 124% higher than online.

It is observed by the study that Sainsbury’s is selling High School Musical 3: Senior Year on Blu-ray film for £14 while the same is available for £2.99 at Zavvi.com; and a video game Call of Duty: Modern Warfare 3 is priced at £39.99 when it is available for £19.99 at Amazon.co.uk.

As per the study, online price inflation is at a five-year-low when compared to the soaring High Street prices.

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Supermarket prices surged 6.2% in the last five years compared to 3% increase in online prices, with in-store prices posting 1.6% increase in the second quarter of 2012, while the online prices dropping 0.7% over its previous year.

Lower overhead costs have found to be crucial for online retailers to be able to sell good at discounted prices, the study noted.