Pricing: Between mega stores and open market

Jill Okeke

WITH the economy increasingly getting tougher, no thanks to government’s recent increase of the Value Added Tax (VAT) and other factors, consumers are desperate to find out where to get products at good value and affordable price.

With that in mind, Consumer Watch set out to popular mega stores like ShopRite, Ikeja Shopping mall, SPAR Opebi Ikeja, Agege market to compare prices and find out what attracts consumers to a shop in a particular place.

Most of us still have sweet memories of Leventis, Kingsway, UTC stores of the 70s, 80s and 90s. Those were the mega stores holding sway in Nigeria then. They presented what is defined as super stores. Their patronage cut across all ages and sex and they boasted of almost every item; from food products to wears to household furniture.

However, as Nigeria’s economy became challenged through many unpopular government policies, these stores could not keep up with the unfriendly business environment and one after the other they closed shops.

Consumers were left with small shops for many years. As government policies began to change and encourage super stores again, ShopRite became the first super store to venture into the Nigerian market in 2005. That entry marked the beginning of a new era for the retail sector.

After shopRite, the Game Stores quickly followed and the spirit of competition ensued. Other super stores like Roban Stores etcetera sprang up. Eventually SPAR joined the race in 2009.

One thing common with all these shops is that they boast to offer good value at the cheapest price ever. They also claim to being a one-stop shop for all household products.

Investigations, however, reveal that major open markets are still slightly cheaper than the mega super stores. Though ShopRite is struggling to match its slogan, ‘lower prices you can trust always’, prices of goods at major markets like Agege, Oke Arin, Lagos are still cheaper while most products are much more expensive at SPAR Stores.

We selected some popular products to compare the prices they are sold at ShopRite, SPAR, and Agege market. For instance, while 1kg Golden Morning cereal sells for N1,250 in a major market, it sells for N1,299.99 in ShopRite and N1,500 at SPAR. 2.8L power oil sell for N1,800 in the market but sell for N2,599.99 and N2,690 respectively in the two super stores mentioned.

800g Ovaltine chocolate beverage goes for N2,000 in Agege market but sells for N2,499.99 in ShopRite and N2,450 in SPAR. 2kg Sunlight washing powder sells for N1,200 in the open market but sells for N1,299.99 in ShopRite and N1,650 in SPAR. While 750ml liquid Dettol disinfectant sells for N2,700 in the market, it goes for N2,99.99 in ShopRite and N3,100 in SPAR.

Meanwhile, at the Agege market 320g Milo cereal goes for N900, it sells for N899.99 and N955 in the supermarkets above. 1L Hypo liquid bleach sells for N500 in the market but at ShopRite it sells for N549.99 and N520 in SPAR. 500g Sunvita cereal sells for N600 in the market, at ShopRite it is displayed for N599.99 while SPAR sells it for N625.

In the drink section, the super stores were found not to be doing badly though while ShopRite and Agege market sell 750ml Andre Rose wine for N2,299.99 and N2,300 respectively, the same wine sells for a whopping N2,690 in SPAR. While 330ml can of Star beer sells for N130 at the open market, it sells for N119.99 in ShopRite and N140 in SPAR. 1L Frutta orange juice sells for N320 in the market but N329.99 in ShopRite with the Pineapple flavour selling for N345 in SPAR.

While 1L Chivita 100% goes for N400 in the market, Consumers can buy it for N389.99 in ShopRite and N420 in SPAR. 30cl 5Alive Puppy drink sells for N150 in the market but N149.99 in ShopRite and SPAR N145. 440ml Monster energy drink sells for N350 in the open market but N349.99 in ShopRite and N410 in SPAR.

Prices of soft beverages like Pepsi, Coca-Cola, malt drinks etcetera are better than what is obtained in the market.

Though most of the prices are higher than what is obtained in the market, one thing they have going for them is the price tags on each product, proximity of having all the item in one place, conducive environment and of course car park. Though payment in most of the car parks like Ikeja shopping mall discourages some of the prospective buyers. At Opebi SPAR, shoppers do not pay to park their cars, giving you ample time to shop leisurely.

“Since Shoprite came to Ikeja, I don’t think I have tried to buy any important commodity around my house. I prefer coming here with the belief that the prices are okay,” Amara Gabriel, a resident of Alausa, said.

Another customer, Mrs. Funmilayo Sunday, noted that sometimes she was aware of the differences in prices, she believes that she would get better quality products and satisfaction patronising Super stores.

“With products sold Shoprite or SPAR, 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 their brand names, most of us have come to believe in the things sold there,” she said.

According to another shopper, Mrs. Ngozi Owoh, “You can see I am not sweating. I prefer super markets because of the conducive environment. I do not think the price will be cheaper in the market.”

The Ikeja ShopRite manager, though aware the reporter was doing price check was not on seat. A top management staff who pleaded anonymity explained that the prices are placed depending on the supplies at every point in time.

According to him, “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. We sell according to how we purchase.”