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).

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.