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Are supermarket discounts as attractive as they seem?

A report by an industry magazine has prompted discussions regarding the pricing policy of the U.K.'s leading supermarkets. The investigation found that 25% of products which were advertised as part of a bundled package of discounted lines later returned at a higher price than before the promotions. While the likes of Tesco, Sainsbury's, Asda and Morrisons have been specifically mentioned in the report there is some confusion as to the underlying trend.

A number of media publications have suggested that in general supermarket prices have been rising of late which is in direct conflict to the indication given by the ongoing adverts on television and in the press. There is no doubt that some areas of supermarket products have seen prices rise because of both import and travel costs but the examples highlighted by some areas of the media include a 88% increase in the cost of cucumbers and a 76% rise in the cost of a six pack of tomatoes. There is also speculation that overall milk and cheese prices have risen by around 15% although the supermarkets do not agree with these claims.

The supermarket sector continues to grab more and more of the UK food and non-food markets with a number of local shops forced out of business. This has led to claims that UK supermarkets have too much sway in the retail sector and are abusing their position of power.

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