Supermarket Online Prices Significantly Higher Than In-Store
Translated & summarized from Ice by baba
A Channel 13 News investigation found that online grocery prices are significantly higher than in-store prices at major Israeli supermarket chains, with Rami Levy showing the largest average difference of nearly 9%. Extreme price hikes were noted for individual items like deodorant and clementines. Retailers cite delivery and picking costs, while experts suggest convenience also allows for premium pricing. This occurs amid a broader trend of sharp food price increases in Israel.
The story in 6 lines · by baba
- Online grocery baskets at Rami Levy were nearly 9% more expensive than in-store purchases.
- Extreme price differences were found for specific items like deodorant and clementines online.
- Other chains like Carrefour, Victory, and Shufersal also showed higher online prices.
- Ketsat Ta'am was the only chain with identical online and in-store prices.
- Retailers blame higher online costs, while experts cite convenience as a factor.
- The findings come as Israeli food prices have already risen sharply by 20% in four years.
A price comparison study has revealed substantial discrepancies between online and in-store prices at major Israeli supermarket chains, with Rami Levy Supermarket showing the largest gap. The investigation, conducted by Pricez for Channel 13 News, found that an online basket of goods at Rami Levy was nearly 9% more expensive than the same items purchased at its discount branches. In some instances, individual product price differences were extreme, such as a deodorant priced at NIS 4.90 on sale in-store but NIS 19.20 online, and clementines costing under NIS 5 per kilogram in-store versus NIS 17.20 online.
Similar, though less pronounced, price disparities were observed at other chains including Carrefour (over 7% difference), Victory (around 6%), and Shufersal (approximately 5%). Shufersal, for example, listed Persian rice at NIS 3.90 in-store compared to NIS 9.00 online, and canola oil at NIS 3.90 in-store versus nearly NIS 10 online. The study also noted significant price hikes for produce online, with sweet potatoes costing under NIS 3 per kilogram in-store at Shufersal but approaching NIS 10 online.
However, not all chains exhibited these differences. Hazi Hinam and Tiv Ta'am showed negligible price variations between their online and physical stores, although their base prices are generally higher. Ketsat Ta'am was the only chain where online and in-store prices were identical across the board.
Supermarket chains attribute the higher online prices to the operational costs of fulfilling online orders, including product picking and delivery. Experts cited in the report suggest that beyond these costs, retailers also leverage the convenience offered to customers to charge a premium. These findings emerge at a time when food prices in Israel have already risen sharply, by about 20% in the last four years, compared to a 4% increase in the preceding four years.