Tuesday, May 20, 2008

May 2008: Prices going up

Much is said about inflation and some of us may have realized this in cases whereby certain products have risen sharply.But to put into perspective we here at the Priceisright.Cambodia have used the latest price data to present the following overview:


Lucky's Thai Huot
Nov '07-May '08 17,4% 9,3%
on annual basis 34,6% 18,6%
no. of products 21 15
Dec '07-May '08 14,0% 7,6%
on annual basis 33,3% 18,1%
no. of products 53 37
Feb-May '08 8,3% 5,7%
on annual basis 30,4% 21,2%
no.of products 61 45

With two of Phnom Penh's most popular supermarkets as reference, it's easy to see that inflation is high. Between November 2007 and May 2008 prices rose by 17,4 % at Lucky's while Thai Huot registered just under half that figure, 9,3%. Doubling these figures gives an annual estimate. An estimate, because we do not contend that the numbers we came up with are the exact numbers; they provide an indication. This is specially apparent in the overview November-May: not many products are included, thus December-May is a more accurate estimate. Still these figures are near those of November-May.

When these numbers are recalculated to an annual number, it's surprisingly to see, Lucky's numbers dropping (from 34,6% to 30,4%, on an annual basis), while those of Thai Huot are going up (from 18,6% to 21,2%). Though still considerable difference between the two.

Not to be deduced from this table are the numbers over the April-May period for Lucky, which add up to more than 50% (53,3%, based on 48 products) on an annual basis, so the price rises slowing is most probably a temporary thing.

The reality? Orchid butter has gone from $1,35 to $3,10, Sunflower oil from $1,90 to $3,20 between November and May @ Lucky's, President Camembert from $3,20 to $4,75 and Cadbury's chocolate from $3,40 to $3,90 between December and May 2008. At Thai Huot Schweppes Bitter Lemon has gone from $0,55 to $0,75, Arla Mozarella from $2,90 to $3,50 between November and December, Soybean oil from $1,40 to $1,90 and Sunsilk shampoo from $3,20 to $3,55 between December and May 2008.

More recent increases have been Feta cheese (Lemnos from $5,10 to $6,60), toilet paper (Cellox, from $0,90 to $1,10) and teabags (Lipton, from $3,95 to $4,30) at Lucky's during the past month. Over at Thai Huot more recent rises over the February-May time frame have been Nescafe (from $3,50 to $4,10) and rice (New Rain from $1,20 to $1,40).


Sunday, May 18, 2008

May '08: the results

It's just over 3 months since the last Phnom Penh supermarket comparison. In the meantime there's much been said on inflation. So much so, that we warrant this a separate entry, later this week. Let's just concentrate what's available today.
In this comparison four supermarkets were compared, Lucky's being the market leader in size and Thai Huot the cheapest supermarket. Additionally brought into the comparison were survey newcomers Sydney, which claims to have the largest selection and BS supermarket, situated in it's own department store.

Table 1:Price level in comparison with minimum price

May '08 Ranking
Lucky's 109,6% 4
Sydney 107,6% 3
BS 103,7% 1
Thai Huot 104,5% 2

When comparing to the minimum available price in the 4 supermarkets, it's clear that both the BS supermarket and Thai Huot are much cheaper than their larger competitors. This is also obvious when prices are compared to the average price, where the findings are roughly the same.

Table 2.: Price level in comparison to average price

May '08 Ranking
Lucky's 102,5% 4
Sydney 100,8% 3
BS 96,7% 1
Thai Huot 97,9% 2

Strange these findings, especially considering that Lucky's is the market leader and on basis of it's turnover, it should be able to charge the cheapest prices; at least not being the most expensive. BS supermarket though is the smallest and should have the more expensive prices.
A possible explanation is that BS management fails to conclude that their market is achieving near to none turn over and that many of the prices are in fact out of date prices: these products have been waiting too long for customers and are costing the company in capital costs. Solution: just wait until these products are so cheap that they'll sell themselves? In the meantime go to BS for cheap Coca Cola, cooking oil, sweeteners and rice. Co-incidentally or not, all products which have been raised considerably during the past months.

Table 3.: Percentage of products with lowest price

May '08 Ranking
Lucky's 38,5% 3
Sydney 33,3% 4
BS 59,4% 2
Thai Huot 69,4% 1

Finally, a word of caution as always. The survey is not an absolute overview, it does however show trends. Lucky's is more expensive than the Thai Huot market. At the same time Lucky's also has much more choice. See table four for instance. Lucky's comparison is based on 65 products double that of BS.

Table 4.: Number of products on which the results are based

May '08
Lucky's 65
Sydney 57
BS 32
Thai Huot 49


Friday, May 16, 2008

Cambodia supermarket prices: the May 15 comparison data

Product Specification Price
@ Lucky's
Price
@ Sydney
Price
@ BS
Price
@ Thai Huot
Tea bags Lipton, packet, 100 bags 4,30 4,50 4,60 3,95
Instant coffee Nescafe Red Cup, jar, 200 gr 4,10 4,10 4,20 4,10
Coffee Nestle, Coffee mate, 50 bags 1,75 1,60 1,50 1,55
Ovaltine jar, 200 gr 1,60 1,70 1,60
Peanut Butter jar, local 440 gr 3,05 3,00

Jam Best Food, Orange, jar, 280 gr 1,50 1,10 1,10
Nutella jar, hazelnut cream, jar 375 gr, 5,25

3,90
Peanuts Tong garden, salted, 180 gr 0,90 0,90

Pretzels Pringles 1,45 1,45

Raisins Ligo, carton, 312 gr. 1,30

1,30
Preservatives Heinz Baked Beans, 420 gr 1,35

1,10
Eggs 10 pieces 0,95 1,05
1,05
Butter Orchid, fresh, packet, 227 gr. 3,10 2,00

Magarine Flora original, 500gr 3,30 3,50
3,10
Fresh milk Dutch Mill, plastic bottle, 2 liter 4,05

3,70
Fresh milk Meiji, plastic bottle, 2 liter 4,05 4,20

UHT milk Foremost 1 ltr 1,45 1,50 1,50 1,40
Yogurht Dutch Mill, small cup, 150 ml 0,55 0,55 0,55 0,50
Dishwashing liquid Sunlight, flacon, 900 gr 0,90 0,95 0,90 1,00
Green tea Oisho, platic bottle, 0,5 ltr 0,65 0,70 0,60 0,60
Cola Coca Cola, can 0,40 0,35 0,30 0,35
Soda Schweppes, bitter lemon, 0,33 ltr 0,60 0,65
0,75
Tang Orange flavour, pack, 750 gr 2,55

2,70
Drinking water Eurotech (local), 0,5 ltr, bottle 0,25 0,20 0,15 0,20
Drinking water Minere, 0,5 ltr, bottle 0,35 0,35
0,35
Fruit juice Mallee, orange, 1 ltr 2,00 2,00 2,00 1,95
Fruit juice Berri, 2,4 ltr 3,30 3,20 3,40 3,15
Batteries Duracell, AAA, 4 pieces 1,80

1,70
Sugar cubes Hales, 500 gr 0,85 0,85
0,80
Sugar Mitr Pohl, 1 kg 0,60 0,65 0,55 0,70
Sugar Equal powder sachets, 50 x 2,75 2,80 2,50
Salt Prung Thip 1 kg 0,50 0,50
0,50
Olive oil Latino Bello, bottle, 1 ltr. 11,75 10,20 9,50
Sunflower Oil Sunbeam, flacon, 1 ltr 3,20 3,20

Vegetable oil Healthy Chef (soy) 0,75 ltr 1,85 2,00 1,50 1,90
Soy sauce Maggi, Sprinkling and dipping sauce, 200 ml 0,80

0,80
Soy sauce Kikoman 2,30 2,40
2,15
Mustard Clovis, 200 gr jar 2,15 2,20

Coconut milk Chaokoh, tin, 160 ml 0,50 0,35

Mayonaise Best Foods, 220 gr jar 1,25 1,25 1,20
Tomato ketchup KK 320 gr 0,60 0,65
0,70
Cheese Kiri, 120 gr 2,90

2,20
Cheese Arla, Mozzarella, 200 gr
3,70
3,50
Cheese La vache qui rit, triangles spreadable 2,00 2,00
1,90
Cheese Devondale, light & tasty, 250 gr 4,20 4,75

Toilet paper Cellox, soft 1,10 1,00 1,20 1,00
Beer Anchor, Cambodian produced, can, 0,33 ltr 0,60 0,60
0,60
Beer Imported, Heineken, can, 0,33 ltr 1,20 1,20
1,00
Diapers Huggies Dry m22 5,10 5,40 5,50 4,90
Instant formula Lactogen 1, 0,9 kg 9,30 8,70 8,85 8,70
Instant formula Foremost 1, 400 gr 4,40 3,90 4,20 3,80
Toothpaste Colgate, 200 gr
1,00 1,00 1,00
Shampoo Sunsilk, 91 ml, 0,55 0,55 0,60
Soap Lux, 4x85 gr 1,20 1,10 1,20
Deoderant Rexona, 25 ml 1,10 1,00 1,00 1,05
Deoderant Fa, 50 ml
1,50 1,20 1,30

Whisper regular flow with wings, 8x
0,65 0,50
Pasta Campagna, 500 gr spaghetti 1,35

1,20
Pasta Barilla Fusulii 1,60 1,60
1,70
Instant noodles Mama cup, 60 gr, pork 0,50 0,50 0,55
Rice New Rain Organics, 1 kg 1,60 1,50 1,40 1,40
Frozen food French Fries, Ligo, large
5,00
4,20
Ice Cream Magnum Classic 1,50

1,40
Meat Tulip, can, 340 ge, pork luncheon meat 2,15 2,40

Meat Tuna chunks in vegetable oil, Roza, can 155 gr 0,85 0,90

Chocolate Cadbury's raisins and nuts, 250 gr 3,90

3,70
Vodka Smirnoff Red 75 cl 6,30

5,80
Insecticide Raid Multiinsect, 600 gr 2,30
2,30 2,60
Detergent Breeze Colour, 650 gr 1,20 1,20 1,10 1,20
Fabric softener Fineline, refill 0,60 0,65

Wednesday, May 14, 2008

Company policy?

Being a consumer in Cambodia has it's down sides. Service generally is average to poor, product range lacks and changes every week, access ispoor and .... information on prices is zero.

This site has been changing this last aspect with regular features on PhnomPenh's supermarkets and the prices they charge. We at priceisright.cambodia do not contend that this research is reality, though we do believe the trends we present are very similar to the reality.

So to do this research we need a realistic overview and be beware of not making mistakes in the calculation and/or presentation. In many countries these kinds of overviews are done by consumer organisations. Not here, as there are none.

And now even collecting data is becoming impossible. You would think that Lucky supermarkets ("where quality comes first") has nothing to lose by disclosing their pricing data to the general public. If you are the market leader and in stiff competition with other local retailers, price is a great opportunity to differentiate yourself from the competition.

However, despite having more customers and thus having more advantage in pricing options, Lucky supermarkets has not excelled in this aspect. Actually it is one of the more expensive supermarkets. That need not be a problem if for instance choice is larger (the case), service is better (not the case) or giving away cash prices (every $1000 spent gets you $30, i.e. 3% discount) leads to a better price comparison (the case).

But back to today. This morning one of our surveyors was kindly asked: 'what are you writing'. She answered: 'why do you need to know?'. Employee: 'Due to company policy, it is not allowed to write in our supermarkets'.

What a strange company policy! So consumers are not allowed to collect information? Why not? Have Lucky Supermarkets something to hide? Or are they afraid, that the public will know that Lucky's are overcharging?

Anyhow, in the upcoming days, new revelations both on price comparison (Lucky's vs. Thai Huot vs. BS vs. Sydney) as well as on price rises.

Friday, April 11, 2008

Inflationary pressures @ Lucky's? The results

The previous post gives an overview of prices @ Luckys as of today, 12 April, 2008. The list follows as much as possible the list as published on 7 February 2008 containing prices recorded in the period February 1-5, 2008. The exceptions are few and are from my own maintained list which was not fully published as some products had little value in the overall comparison. The Lucky prices were those that were recorded on February 5, 2008.

In this overview there are 66 products which are compared. The cost of these products on the 5 February was 132,95 $US. Today's prices are exactly 4 $ US more expensive or 3,01%. On the basis that between then and now are 66 days, then this corresponds to 16,6 % increase on an annual basis.

More expensive were the aforementioned Orchid butter (+72%) and Wall's vanilla ice cream / Mama's noodles hot cup (both +25%). Others were peanut butter, rice, chocolate products, dairy products, soybean oil and sugar. Two products became cheaper, salsa sauce and margarine.

However, quite noticeable were that cheaper products / smaller helpings increased in price. If the price for each product on February 5 2008 is considered to be 1, then the increase corresponds to 5,3% or on an annual basis 29,4 %!

Back in February I commented on how the price rise on annual basis at Lucky's was higher than 25%; it was actually 27,01%. So since then inflation has continued to stay high and become even higher.

Compared to the start of price observation prices on a limited number of products at Lucky's (17), prices have increased by 17%, which is huge on annual basis. So don't postpone your new year shopping!

Inflationary prices @ Lucky's? The numbers

Product Specification 5 February 5 April
Tea bags Lipton, packet, 100 bags 3,95 3,95
Peanut Butter Healthland, local 440 gr 2,50 3,05
Peanut Butter Ligo, 340 gr 1,80 1,80
Jam Best Foods, orange, 280 gr 1,10 1,10
Jam Hero, Blackberry, jar, 340 gr 2,40 2,40
Hazelnut Cream
Nutella, jar, 375 gr, 5,25 5,25
Pretzels Pringles 1,45 1,45
Cashew nuts New Rain, 100 gr, salted 1,35 1,35
Raisins Ligo, carton, 312 gr. 1,30 1,30
Eggs 10 pieces 0,95 0,95
Butter Orchid, fresh, packet, 227 gr. 1,80 3,10
Magarine Flora original, 500gr 3,90 3,55
Fresh milk Dutch Mill, plastic bottle, 2 liter 3,80 4,05
UHT milk Foremost, 1 ltr 1,25 1,45
Yogurht Dutch Mill, small cup 0,50 0,60
Dishwashing liquid Sunlight, flacon, 900 gr 0,80 0,80
Green tea Oisho, platic bottle, 0,5 ltr 0,60 0,60
Green tea Zena, with lemon, 0,5 ltr 0,55 0,60
Cola Coca Cola, can 0,40 0,40
Soda Schweppes, bitter lemon, 0,33 ltr 0,60 0,60
Tang Orange flavour, pack, 750 gr 2,75 2,75
Fruit juice Ceres, various, 1 ltr. 1,45 1,45
Fruit juice Ligo, apple, 1 ltr 1,50 1,50
Fruit juice Berri, 2,4 ltr 2,90 2,90
Batteries Duracell, AAA, 4 pieces 1,80 1,80
Sugar cubes Hales, 500 gr 0,75 0,85
Sugar Mitr Pohl, 1 kg 0,55 0,60
Sugar Equal powder sachets, 50 x 2,40 2,40
Salt Prung Thip 1 kg 0,45 0,45
Sunflower Oil Sunbeam, flacon, 1 ltr 2,70 2,70
Vegetable oil Healthy Chef (soy) 0,75 ltr 1,35 1,60
Soy sauce Maggi, Sprinkling and dipping sauce, 200 ml 0,70 0,70
Mustard Clovis, 200 gr jar 2,15 2,15
Slasa suace Healthland, local, 215 gr jar 2,55 1,85
Coconut milk Chaokoh, tin, 160 ml 0,50 0,50
Tomato ketchup KK 320 gr 0,50 0,60
Cheese La vache qui rit, triangles, spreadable 1,80 2,00
Cheese Lemnos, feta 5,10 5,10
Cheese Devondale, light & tasty, 250 gr 4,20 4,20
Toilet paper Cellox, soft 0,90 0,90
Beer Imported, Heineken, can, 0,33 ltr 1,00 1,20
Diapers Huggies Dry, m22 4,70 5,10
Cornflakes Kellog's, packet 275 gr 2,75 2,75
Instant formula Similac 2, 400 gr 7,40 7,40
Instant formula Foremost 1, 400 gr 4,10 4,40
Toothpaste Colgate, 200 gr 0,95 1,00
Shampoo Sunsilk, 400 ml, 3,30 3,30
Soap Lux, 4x85 gr 1,05 1,05
Deoderant Rexona, 25 ml 1,00 1,00
Spaghetti Gallo, packet, 500 gr. 1,00 1,05
Pasta Barilla Fusulii 1,60 1,60
Instant noodles Mama cup, 60 gr, pork 0,40 0,50
Rice New Rain Organics, 1 kg 1,45 1,60
Ice Cream Walls Vanilla, 60 gr 0,40 0,50
Ice Cream Magnum Classic 1,40 1,50
Meat Spam can, lite 3,80 3,80
Meat Tuna chunks in vegetable oil, Roza, can 155 gr 0,80 0,85
Meat Sardines, Ligo, 425 gr, can 1,25 1,25
Choclate Mars, 60 gr 0,55 0,65
Chocolate M&M's, 55 gr 0,55 0,65
Chocolate Cadbury's raisins and nuts, 250 gr 3,80 3,90
Cookies Oreo, 150 gr 0,95 1,05
Wine Stump Jump, white, 2005 11,50 11,50
Insecticide Raid Multiinsect, 600 gr 2,25 2,25
Detergent Breeze Colour, 650 gr 1,15 1,15
Fabric softener Fineline, refill 0,60 0,60