Survey hints at distrust of local prices

Friday 16 November 2018

Amid pre-priced packaging and claims of high shipping and store rental costs, a new survey has hinted at a distrust of retailers’ pricing strategies among local shoppers, with a third of respondents labelling them “not at all transparent.”

The results came in a States-commissioned questionnaire involving 1,100 people, aiming to provide a glimpse of Jersey consumers’ shopping list of needs from local retail.

Above all, it unearthed a desire for more choice, lower prices, later opening hours and Sunday trading, with the preference being from 10:00 to 16:00 all year round. 

The survey found that most islanders visited town to buy food and groceries (92%), clothing and footwear (66%) and health and beauty products (57%).

Pictured: Survey respondents said that local prices and lack of variety were driving them online.

However, it also backed the wide-spread belief that increasing frustrations with the limited nature of the island’s offering are leading more shoppers to go online.

Among the key reasons for not shopping in St. Helier over the last month were “poor choice”, “parking hassle”, and retailers being “too expensive” or even having products at prices comparable with “VAT/UK prices.”

In fact, cost was one of the reasons cited by 88% of those surveyed as to why they chose to buy online, rather than locally.

One of the key revelations, however, was mass dissatisfaction with the transparency of pricing.

Three quarters of those surveyed believed that retailers were either only “sometimes” or “not at all” honest about how they’d reached the prices they were charging.

Pictured: Economic Development Minister Senator Lyndon Farnham said that the results of the survey would help the States form retail strategy plans in future.

Around just one in ten felt them to be “always” open, while a similar proportion said they “don’t know.”

Some were reported to have commented that stores different, with “some perceived to as more honest than others.” 

The survey noted: “Though some [were] sympathetic to extra cost for importing items, few associated additional costs to this and believed it was used as an excuse for a larger profit margin.” 

One survey respondent commented: “Transparent pricing with no VAT charged by any [sic] stores. Shipping is a rubbish excuse to leave VAT on, as is pre-priced packaging!”

Another stated: “We are led to believe local retailers are forced to inflate their prices due to ground rent. An impossible situation however, any home working with a budget will always go for the cheaper option for the same brand, quality and after-care service. Cost is a major factor to my family.” 

The survey claimed that there were calls for the introduction of a “compliance window sticker to be provided to stores not charging VAT prices and adherence to transparent pricing.”

Senator Lyndon Farnham, the Minister for Economic Development, said that the survey information would be “put… to good use in shaping the retail development strategy. 

“We need to think about the industry in a wider context as we consider how to work in partnership with them to ensure that the vibrancy in the sector continues,” he said. 

Once a strategy is formed and agreed, its introduction will be driven by the Retail Development Group, which includes States and industry representatives, as well as members of Visit Jersey, the Consumer Council, and the Chamber of Commerce.

President of the latter, Eliot Lincoln, said that the results of the survey had been eagerly awaited.

Now they have arrived and shoppers’ needs known, he called for “concrete actions and a defined timeline for delivery for a Retail Strategy”, which he described as “long overdue.”

He added that decisions needed to be backed by research to ensure they were the right ones for the sector, commenting: “Getting clear metrics is paramount. Clear stats and sector comparatives in terms of revenue, footfall, rental prices, staff costs, staff churn and vacancies, consumer demands, service quality, parking availability and costs will help us identify where we are, where we want to be and therefore the actions we need to take.

“To achieve this, our Government will need to work with other stakeholders on policies that enable this to happen. The Jersey Chamber of Commerce is looking forward to the creation of the Retail Strategy and working with our Members to ensure the delivery of a cohesive Government strategy.”