Sainsbury's staff buy cheap loaves from Iceland to sell on


Staff at a Sainsbury's store were spotted buying discounted loaves of bread from an Iceland store next door, then selling them on with a 50% mark-up.

So how could this happen, and is this the most ridiculous pricing we have seen at the supermarkets?


The Sainsbury's Local store in Cheadle Village, Stockport, had run out of Warburtons Toastie white loaves. It appears that the store had only been open for a week and hadn't got the hang of stocking levels.

A staff member had seen them on sale at the Iceland next door, so decided to pop round and buy 20 of them, at the discounted price of £1. He then re-stocked the shelves directly from his Iceland carrier bag at the standard Sainsbury's price of £1.49.

He was spotted by customers, who reported his actions to the Manchester Evening News. They contacted Sainsbury's, who said that the staff member had broken company policy. A Sainsbury's spokesman told the newspaper: "Our colleagues were trying to be helpful but on this occasion got it wrong. We've reminded the store about the support they have to keep shelves fully stocked to ensure customers can get what they need from Sainsbury's."

The Daily Mail reported that the Office of Fair Trading confirmed that no laws had been broken.

Supermarkets can charge what they like for the brands. Typically bread will be marked up for a profit of around 20% or 30% - so we must assume that either Iceland was selling them as a loss-leader, or that Sainsbury's was charging over the odds.

10 consumer rights you should know
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Sainsbury's staff buy cheap loaves from Iceland to sell on

The law states that any goods you buy from a UK retailer should be of satisfactory quality, as described, fit for purpose and last a reasonable amount of time.

This applies even if you buy items in a sale or with a discount voucher. You may have to insist on these rights being respected, though.

Useful phrases to use when you want to show you mean business include, "according to the Sale of Goods Act 1979" and, if it's a service, "according to the Supply of Goods and Services Act 1982".

Some shops will allow you to exchange goods without a receipt, but they can refuse to should they wish.

If the goods are faulty, however, another proof of purchase such as a bank statement should work just as well.

If you attempt to return goods within four weeks of the purchase, your chances of getting a full refund are much higher as you can argue that you have not "accepted" them.

After this point, you can only really expect an exchange, repair or part-refund.

The updated Consumer Credit Act states that card companies are jointly and severally liable for credit card purchases of between £100 and £60,260 (whether or not you paid just a deposit or the whole amount on your card).

Anyone spending between these amounts on their credit card is therefore protected if the retailer or service provider goes bust, their online shopping never arrives or the items in question are faulty or not as described.

Start by writing to the agency asking it to either remove or change the entry that you think is wrong. It will investigate the matter and find out whether you have been the victim of ID theft or a bank's mistake.

Within 28 days from receipt of your letter the agency should tell you how the bank has responded. If the bank agrees to change the entry, they will authorise the agency to update their records. They should also send updates to any other credit reference agencies they use.

You can also contact your lender directly to query a mistake. If the lender agrees to the discrepancy, ask them to confirm this in writing on their letterhead and send a copy to the agency, asking them to update your file.

The FOS settles disputes between financial companies such as banks and consumers.

If a financial organisation rejects a complaint you make about its services, you can therefore escalate that complaint to the FOS - as long as you have given the company in question at least eight weeks to respond.

The FOS will then investigate the case, and could force the company to offer you compensation should it see fit.

Bailiffs are allowed to take some of your belongings to sell on to cover certain debts, including unpaid Council Tax and parking fines.

They can, for example, take so-called luxury items such as TVs or games consoles. However, they cannot take essentials such as fridges or clothes.

What's more, they can only generally enter your home to take your stuff if you leave a door or window open or invite them in.

You are therefore within your rights to refuse them access and to ask for related documents such as proof of their identity. If they try to force their way in, you can also call the police to stop them.

Private sector debt collectors do not have the same powers as bailiffs, whatever they tell you.

They cannot, for example, enter your home and take your possessions in lieu of payment.

In fact, they can only write, phone, or visit your home to talk to you about paying back the debt. As with bailiffs, you can also call the police if you feel physically threatened.

Thanks to the Distance Selling Regulations, you actually have more rights buying online or by phone than on the High Street.

You can, for example, send most goods back within a week, for a full refund (including outward delivery costs), even if there's no fault.

You will usually need to pay for the return delivery, though. The seller must then refund you within 30 days.

We enter into contracts all the time, whether it be to join a gym, switch energy supplier or take out a loan.

In most cases, once you've signed a contract, you are legally bound by it. In some situations, however, you have the right to cancel it within a certain timeframe.

Credit agreements, for example, can be cancelled within 14 days. And online retailers must tell you about your cancellation rights for any contract made up to stand up legally.


More mistakes

It serves as a reminder that even household names have people on the ground in every store making decisions, and making mistakes, so we need to be careful about pricing when we shop.

When we reported in March about a half price offer that looked like a price rise thanks to the labelling, AOL users shared their experiences.

Tesco had managed to price crisps normally £2.99, on special offer at £3. They also had packets of sauce at 73p each or 3 for £3, and drinks sachets for 16p each or four for £1. The Co-op, meanwhile, 'reduced' their rump steak from £3.75 to £3.89.

As one commenter put it: "Involve human beings in anything and there are bound to be errors. I don't exclude myself from the inevitability of this statement either."

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