Are the discount stores delivering real savings?

Big discounts are now big business. Squeezed household budgets mean that shoppers look for bargains, and discount shops have seized that opportunity.

Companies like Poundland, Home Bargains and B&M Bargains have seen rapid growth in recent years, often taking over empty shops left by the retailers that went bust during the recession.

But are they actually offering good deals? I regularly pop into discount shops to stock up on named brands at cheaper prices, but I sometimes wonder just how good those bargains are.

Without a list of prices to compare them to, I rely on the shop’s ‘great value’ signs to reassure me that the price is a low as possible.

So I decided to put three discount chains – Discount UK, B&M Homestore and Home Bargains – to the test. How do the prices compare to elsewhere? Are the discounts as good as they claim?

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Here’s what I found...

Home Bargains [Sky]

Home Bargains

First I went to Home Bargains, a shop promising ‘top brands, bottom prices’. The shop was rammed with stock from groceries and household goods, to toys and arts materials.

It was full of shoppers stocking up on Christmas decorations and kids’ toys, and leaving with vast plastic bags.

So, how did the prices compare to other shops? I decided to compare the prices to ASDA, a shop that is typically the cheapest for my household. I chose a random selection of household goods.

Item	Home Bargains	ASDA	Price difference
Cadbury Milk Tray (400g)	£3.99	£5	£1.01
Imperial Leather Bath Cream	99p	£1	1p
2-in-1 Bold (40 washes)	£5.99	£8	£2.01
Colgate Cool Stripe toothpaste (100ml)	£1	£1	No difference

*Prices correct as of 04.11.14

As you can see, on the few items I looked at, the supermarket was either more expensive or the same price. So I took a look at toys too, and compared them to online retailers. After all, while I might prefer to buy all my groceries in one shop, I usually search for the cheapest online shop for larger items.

Having stocked up on My First JCB figures for my children’s Christmas stockings, I was pleased to see that the £1.99 price tag was much less than the next best price I found of £4.19.

A 200-piece Mega Bloks set for £9.99 was a bargain; I couldn’t find any online prices as good. Finally, I struggled to find a Peppa Pig Big Day Out play set price online to compare.

According to the shop, the recommended retail price was £44.99 and it was selling it for £22.99. I found similar-sized Peppa products elsewhere for £24.99, but I’d say it was still a bargain,

Discount UK

Next up was Discount UK, which pledged customers would find ‘big brands, big discounts, big savings’. It’s from the same family that launched Poundworld and has grown considerably since its launch in 2010, with more than 30 UK stores and more planned.

The stock was piled high, but with recognisable brands like Andrex, Finish and Heinken. This time, I pitched it against Tesco.

Item	Discount UK	Tesco	Price difference
42 Andrex Washlets	£1	£1.85	85p
Hula Hoops (7 pack)	£1	£1	Same price
12 San Miguel	£7.99	£9 (similar product from same brand)	£1.01
72-pack Weetabix	£3.99	£5.69	£1.70

*Prices correct as of 04.11.14

I also found 90 Finish Classic dishwasher tablets for £7.99 but there was no direct comparison at Tesco, although it did stock a pack of 45 lemon-scented tablets for £16. Online retailer Amazon offered a price of £13.54 for the same-sized box.

So just like Home Bargains, Discount UK matches or beats a supermarket chain.

B&M Homestore

This chain claims to be one of Britain’s fastest growing retailers and claims to welcome three million customers a week. I found a wider variety of groceries in this shop than the other two and it sold fresh milk.

B&M offers well-known brands

But how did the prices compare to the major supermarkets? This time, I’ve compared the prices to Sainsbury’s.

Item	B&M Homestore	Sainsbury’s	Price difference
Heinz Ketchup	£1.99 (800g)	£2 (700g)	n/a
Walkers crisps (20 pack)	£2.49	£4	£1.51
San Miguel (4 pack)	£3.49	£5	£1.51
Persil washing up liquid	89p	£1	11p
Kipling mince pies (6 pack)	69p	£1	31p
Calpol	£2.79	£3.15	36p

*Prices correct as of 04.11.14

So once again the budget shop triumphs – and on big-name brands too, not simply cheaper alternatives.

What about sell-by dates?

Okay, whenever I rave about the prices in discount shops people suggest the products are close to their sell-by dates, SO is it true? It is certainly true that the sell-by dates on the few edible products I looked at were not as lengthy as in ASDA, however, my family would have no problem eating them within the remaining time.

As for the Christmas stuff, that has to at least last until the big day and products that wouldn’t were clearly marked.

Finally, most of the stuff for sale doesn’t need a sell-by date. I am happy to stock up on non-perishables like razors, washing powder and kitchen roll without worrying about whether it’s spent too long sitting in a warehouse.

Am I a convert?

Now that I know discounters can be genuinely cheaper and it’s not just good marketing and a few headline products, I’ll definitely be back. It wouldn’t be possible to switch entirely, as supermarkets sell a wider range, as well as fresh fruit and veg.

However, when I see a bargain I’m going to trust their discounting and fill my trolley.

What do you think? Do you use discount shops? Are they any good? Have your say using the comments below.

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