Unit pricing

The CMA has opened a project to consider the use of unit pricing in the groceries sector.

From:
Competition and Markets Authority
Published
31 January 2023
Last updated
30 January 2024 — See all updates
Case type:
Consumer enforcement
Case state:
Open
Market sector:
Retail and wholesale
Opened:
31 January 2023

Administrative timetable

Date Action
30 January 2024 Findings from consumer research and unit pricing analysis published
20 July 2023 Publication of unit pricing review findings report
31 January 2023 Case opened

Case information

Publication of consumer research, unit pricing analysis, and messages for shoppers

30 January 2024: The CMA has published the findings from some qualitative consumer research that it commissioned to better understand how and when UK shoppers make use of unit pricing information when shopping for grocery products.

We have also published the findings from our analysis of the unit prices of a basket of every-day grocery products. We assessed the extent to which the unit prices of grocery products vary according to their size and packaging and, in turn, the extent to which unit pricing information can help people identify savings when grocery shopping.

In addition, we have published a short report setting out the key highlights from both pieces of work.

Our consumer research shows that some shoppers already find unit pricing helpful. Importantly it highlights that there is scope for more shoppers to use unit pricing, and also for those shoppers who do use it, to use it more regularly. The research highlights the types of purchases where shoppers find it can be most useful.

Our pricing analysis highlights the value of unit pricing when comparing between grocery items - revealing that shoppers’ commonly held assumptions about what products are cheapest on a per unit basis aren’t always right and that the pricing of some products relative to others can be surprising.

We are publishing a short guide and videos for shoppers to raise awareness of the value of unit pricing. This shows some of the rules of thumb that shoppers use to assess best value do not always hold true and encourages shoppers to use unit pricing more often as a reliable alternative to rules of thumb when shopping for groceries.

Publication of unit pricing review findings and an open letter to grocery retailers

20 July 2023: The CMA has published the findings from its review looking at how grocery retailers are displaying unit pricing information in-store and online. During our review, we have seen problems with unit pricing which may affect consumers’ ability to compare products. Some of the problems stem from the Price Marking Order 2004 (the PMO) itself, which allows unhelpful inconsistencies in retailers’ practices and leave too much scope for interpretation.

We have also found examples of non-compliance with the PMO, particularly among some variety stores. We have written directly to certain grocery retailers to highlight specific compliance concerns and to tell them to take action to address the concerns that we have identified. We are also making recommendations to Government to reform the PMO and calling on grocery retailers to make certain changes to their unit pricing practices now, before any reforms are introduced.

Alongside our review findings, the CMA has published an open letter to all grocery retailers calling on them to ensure that they are complying with their obligations under the PMO.

We are continuing further work to consider unit pricing in the groceries sector and will publish a further update in Autumn 2023.

Launch of unit pricing review

31 January 2023: The CMA is undertaking a project focused on the use of unit pricing both in-store and online in the groceries sector. Unit pricing is a labelling system for displaying the cost of different products by reference to standard units of weight or volume intended to assist consumers in comparing the relative costs of different products regardless of their packaged size.

Press Notice: CMA launches grocery unit pricing review to help shoppers spot the best value for their money

This work follows the 2015 Groceries Super-complaint where the CMA previously concluded that complexities and inconsistencies with unit pricing may adversely affect consumers’ ability to make meaningful choices between products.

In the context of the rising cost of living, and the importance of helping consumers make informed choices when shopping for food and other essential products, as well as recent concerns raised by stakeholders about unit pricing practices, the CMA is revisiting this issue.

The project will consider:

  • if the unit pricing issues identified during the 2015 Super-complaint persist
  • compliance with the law by retailers
  • consumer awareness and use of unit pricing information

The project is at an early stage and the CMA has not formed a view on these issues. We will provide an update on our work later in 2023.

Contacts

Any media enquiries should be directed to a member of our Press Office, [email protected]

Updates to this page

Published 31 January 2023
Last updated 30 January 2024 + show all updates

  1. Update on consumer research and unit pricing analysis.

  2. Review of unit pricing published

  3. First published.

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