This morning as I walked into work I stopped by Sainsbury’s in Whitechapel. I thought that I might like some chicken. I found that 360g of chicken thighs costs £2.15. I didn’t buy it; I bought some cereal instead.
But then I thought that maybe I did want some chicken, so I popped into the Sainsbury’s at Bethnal Green to discover that 360g of chicken thighs costs £2.30.
So what’s the difference between the two? About half a mile and fifteen pence. Yes, Sainsbury’s sells the same product for 6.9% more money at Bethnal Green compared to Whitechapel. In effect, you pay a premium if you visit the smaller store.
And, in case you’re wondering, according to the Huffington Post Sainsbury’s recorded underlying profits of £712 million last year. You can see where they’re getting their money from, can’t you?