Primark accused of charging Brits more than US shoppers
Every weekend Primark is packed with bargain-hunters, snapping up fashion at throwaway prices. It might come as a nasty surprise to many of them to hear while they think they are tracking down cut-price bargains, they're sometimes paying more for their fashion than shoppers buying the same items in the US.
The brand has just opened its first store in the US, promoting the Sun to do a price comparison. It put together a woman's outfit using five items described as the same or 'near-identical', and discovered that overall the outfit was £8.14 cheaper in the US. The men's outfit was £6.38 cheaper in Boston.
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Why?
Primark has taken exception to the study. It told the Sun: "This comparison is misleading and is not an accurate reflection of our pricing." British shoppers may pay more for some items, but a major reason for this has nothing to do with Primark - it's down to tax. In Boston there's no sales tax, whereas in the UK we have to pay VAT (most commonly at 20%).
Primark is far from the only store to charge different prices when it operates around the world. We reported back in August that Sports Direct was charging Brits more for replica football kits than it charged elsewhere in Europe. The biggest difference was the Arsenal Authentic Kit from Puma, which at the time cost £79.99 in the UK and £68.15 in Europe.
The company explained that when it sets the price it has to take local competition into account. Sports Direct aims to be the cheapest in any market it operates, so when competitors are cheaper in another country, it will lower its prices accordingly.
It emerged last summer that Ikea also charged different prices around the world - including a chair that cost £100 in the UK and £68 in Sweden and a pan set that cost £130 in the UK and just £52 in the US. Ikea said competition was a factor - as it also aims to give customers the lowest price for comparable products sold by any competitor. It added that stores were subject to different costs in each country - ranging from exchange rates to taxes, wages and energy prices - and that these had to be factored into the price.
It's disappointing to hear that shoppers elsewhere are getting cheaper products, but it seems our anger may be better directed at the high sales taxes, and sky-high business rates faced by shops in the UK, rather than at Primark. It may be charging us a little more than in the US, but is still selling a camel coat for £25 and a pair of men's chinos for £8.
But what do you think? Are you happy with your bargains? Let us know in the comments.
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