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PRICE comparisons between the Scottish Co-op stores in the Western Isles and equivalent rival outlets have been demanded by the society's islands divisional committee.
The survey has been asked for following concern in the Southern Isles that there is an ever growing price differential.
It is hoped the survey findings being prepared by Mr Ian McCarthy, the Co-op regional operations manager, will be available for the next islands divisional committee meeting on April 8.
Disquiet at high prices has been a continuing feature of meetings, but came to a head in the last few weeks over the pricing structure being operated at the Creagorry store.
But the Scottish Co-op says pricing structure is dictated by store size and distribution costs are not a consideration.
A Scottish co-op spokeswoman explained: "Our smaller stores have significantly higher operating costs than supermarkets and superstores that benefit from economies of scale."
Despite these higher operating costs, the Co-op endeavours to offer competitive prices for a comprehensive range of products. She pointed out that all fresh fruit and vegetables are on sale at superstore prices, stores in the Islands also benefit from promotional offers and a number of basic products are also uniformly priced.
"All our special offers which provide some of the deepest cuts in the UK are also available in our smaller stores," the spokeswoman commented.-"We remain committed to serving rural communities, areas where our competitors are reluctant to trade. But shoppers must appreciate that we need to charge realistic prices and that we cannot offer prices available in Stornoway superstore which benefits from economies of scale."
She went on that although the Creagorry store was upgraded and extended it is still less than 4,000 square feet which compares with Stornoway at 30,000 square feet and Aberdeen with more than 80,000 square feet.
The Co-op operate five separate price bandings across their 159-strong network: Band One for superstores, Band Two for supermarkets, Band Three for foodstores and late-stores, Band Four for rural stores, and Band Five for outlets where competition is particularly fierce.
Mr Colin Hutchings, secretary of the islands divisional committee says since the setting up of the committee in 1994 they have been "chipping away" at the Scottish Co-op for lower prices not only in the Western Isles but in the rest of their area which takes in Orkney, Shetland and Skye.
Over the past two years there has been a gradual relaxation of the Band Four status which has seen more and more stores slip into the cheaper Band Three pricing structure. He adds that in the last 12 months the islands divisional committee have also successfully negotiated mainland superstores prices for over 100 staple and everyday items. In addition, there are now also multi-save offers and the re-introduction of the five per cent "divi".
Explains Mr Hutchings:-"It has been a matter of chipping away gradually. With such a large organisation to get a move forward takes a long while."
The islands divisional committee discusses prices every month and feel some progress has been made in the past year.
Original article Stornoway Gazette Apr 07 1997.
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