ABSTRACT: Using a large and comprehensive data set containing the average weekly prices of barcode specific products sold in seven national food retailers in the UK, we present statistical evidence on two pricing practices that have attracted public interest. Analysing price dynamics before and after periods of promotional discounting the investigation finds first, no evidence of a general tendency for sales to disguise rises in the regular price, and second, some evidence for prices to rise prior to sales in a manner that is consistent with the exaggeration of the discount.
KEYWORDS: Food retailing, promotional discounting
CITATION: Lan, H., Lloyd, T.A. & Morgan, C. W (2014) "Supermarket Promotions and Food Prices", CCP Working Paper 14-2