There is over £500 of difference between an identical basket of 200 goods in the cheapest and most expensive parts of the UK, a new study has revealed.
London is surprisingly the cheapest place to shop in country, according to a report from research companies Kelkoo and Verdict, whilst Swindon shoppers pay the most for retail products. The Regional Retail Pricing Index compared the cost of a basket of 200 consumer goods from 10 high street retailer across 12 locations in the UK.
Whilst the basket cost consumers £366 less than the UK average in the nation’s capital, the same items were £171 more than the average in town in the south west.
Chris Simpson, Marketing Director Kelkoo, said: “Our index reveals that on a typical basket of popular consumer goods, a £537 price gap exists between the UK’s cheapest and most expensive shopping destinations, with shoppers in the smaller more rural areas of Swindon, Wrexham, and Peterborough paying the highest prices.
“Whilst we’re not telling consumers in these locations to stop shopping in the local area, we would always encourage consumers to compare prices both online and offline before they make a decision, particularly on big ticket items.”
Other cheap locations include Newcastle, with prices £257 under the average and Glasgow, where consumers pay £253 less, whilst the other two major centres surveyed, Bristol and Cardiff were £141 and £82 more expensive.
Electrical products have the largest deviation in price depending on location, with a significant £445 gap between London and Wrexham.
Competition is probably the biggest pressure on prices in London, with the cream of the world retailers fighting over sales and the high cost of living obviously impacts on Londoners spending power.
Simpson added: “Retail sales have continued to suffer since the start of the New Year which puts retailers under constant pressure to maintain the balancing act of offering discounts and special offers, whilst still protecting their profit margins.
“For those with a nationwide store network, factors such as the store type and location, local competition, and the regional micro-economic environment all contribute to the regional pricing strategy.
“Ultimately, this means that prices on the same goods can vary between one part of the UK and another.”
Items used for the survey covered the electricals, home, fashion, sports, stationery, toys and entertainment sectors, with London the cheapest for the first four.