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Why overpricing at Union Co-Op outlets

DUBAI — The Union Co-Operative Society has enjoyed a reputation for protecting consumers from market manipulators by offering the best competitive prices in the UAE. But, in recent days, it is accused of overpricing several food items on its shelves. The Director-General of the Al Ittihad Co-Operative Society, Marwan Al Thani, puts the blame for this on the distributors and the parallel market emerging in the country, which, he says, is offering similar brands at cheaper price by bringing them via Oman.

An irate customer, who has been a regular shopper at the Union Co-Operative outlet in Karama, complained that a 750gm jar of Nutella Ferrero that he purchased recently from the outlet was overpriced.

“I paid Dh20.50 for the Nutella jar at Union Co-Op whereas the same product, available at a supermarket just across the road, costs Dh15.95,” complained the customer.

“When I discovered that the price difference was Dh4.55, I immediately rushed back to the Union Co-Op outlet who agreed to take the product back and refund the entire amount. But, this is no solution,” he said.

“I shopped at the Union Co-Op only because I was under the impression that I was a sensible shopper and was buying my grocery at very competitive price,” he said.

Similar complaints of overpricing of a number of food products were also reported in an Arabic daily in Dubai recently. The report stated that around 20 food items were found to be overpriced compared to other supermarkets and hypermarkets.

Al Thani does not deny complaints on overpricing of some items. He said this was because a number of distributors were “resorting to illegal channels to bring in food products through Oman and other Gulf countries into the UAE at cheaper price.”

“But, as far as our products are concerned, they are of good quality and are supplied by reputed distributors in the country. Besides, we ensure that no near-expiry product is displayed on our shelves, a common practice by many who sell the same product at low price in the UAE,” he explained.

Al Thani said they have, however, taken up the issue with the suppliers who in turn raised the matter with the local authorities to take strict action against illegal suppliers.

According to Al Thani, “Our customer is very important to the Union Co-Operative stores. We cannot afford to upset them. As a result, notice is put across all outlets of Union Co-Op saying customers can seek refund of money in case of complaints on price discrepancies.”

“We are a shareholding company and cannot upset the consumer,” he said, adding: “The prices at the Union Co-Op outlets still remain very competitive. Our grocery products are the most competitive.”

Currently operating seven outlets in Dubai with the eighth one to open soon in Al Barsha, Al Thani said: “Each outlet has over 80,000 items on the shelves. It is difficult to check prices of each product with those available in other supermarkets and hypermarkets. Although, a daily survey is carried out by our staff to compare our prices with those of other outlets, difference in prices can occur sometimes.”

Union Co-Operative Society is the largest society in the UAE with around 11,000 shareholders, and the second largest in terms of sales and profit. Established in 1982 by a group of nationals, the Union Co-Operative Society is a venture aimed at helping the community to stand as one integrated unit for protecting consumers and families of limited income from market manipulators.