Express pricing

Express pricing is a form of pricing where, in a reverse of economies of scale, retailers raise their prices slightly in smaller stores.^[1] The name of it originates from Tesco Express, but it can be used to apply to any retailer operating a similar policy. According to Sainsbury's, this can be attributed to discrepancies in "operational requirements and running costs. Rents, for example",^[2] it being "more of a challenge to deliver products to our local stores"^[2] and "other factors such as staffing, local rates and a focus on convenience products".^[2]

Tesco themselves have acknowledged this, saying "Our prices don’t differ greatly but they will differ slightly because of the difference in costs of running the smaller stores. Express stores are typically on the high street, which means Tesco don’t very often own the land. So the overheads involved in running a smaller store are higher."^[3]

In 2011, Marks and Spencer's policy of charging express pricing in their Simply Food branches was reported on. A spokesperson has admitted "prices are a little higher than at our high street stores".^[4]

References