In fact I'm convinced the likes of Tesco also do this with stuff they have brought in specifically to sell with the illusion of a discount. There is a set of saucepans on 'offer' ATM that springs to mind that I saw for sale at £29.99 reduced from £49.99 and 2 days later they were £24.99, they loo rather nice from a distance but on closer inspection they seem to only be worth the so called discounted price.
Also look at WHSmith who in my opinion are one of the worst offenders, the amount of time I have seen them off 60%/ 70% discount on something only for it to even cheaper still almost anywhere else including over priced places like Dixions on occasion. Personally I think there whole business model revolves round diddling people.
Tesco definitely do it, as do Dixons and no doubt many others. Look at the ads on TV that say 'Dixons exclusive' and you'll see how easy such a scam is.
Let's say you look around for a certain brand laptop, commonly available. Chances are there might be SOME competition (not too much as many big retailers quite like the cartel arrangement to keep prices artificially high) but what about those other models that are exclusive? They're quite often almost identical, but have a different model number and a slightly modified specification. As it's an exclusive, Dixons (or Tesco etc) will be free to create any suggested retail price it likes - then mark it down for big savings.
They ALL do it. Forget 'XX% off' and 'Previously £xxx' as they're usually always misleading. Quite often Dixons knocking money off a product is only because the price has come down across the board.. like Apple launching a new iPad and lowering the price of the previous one.
As for WH Smith - I try to avoid buying anything from them. Even a bar of chocolate or a bottle of coke purchased there makes me angry, along with them scanning vouchers that they often don't even give me (so they can rip off the company that issued the vouchers by claiming to have handed out more than they really did).
One of the best scams of recent years (well, more like 10 years ago!) was the furniture business and all that high quality pine furniture with massive savings. If you sell furniture, you can get the suppliers to reprint their nice catalogues for you - adding your company details and then adding whatever markup you ask for. Want to make everything 5x the normal price? No problem! Now you can give them out in store to customers and say 'we'll give you 50% off the catalogue prices' and they feel privileged, and possibly keen to buy sooner rather than later in case the prices go back up.
DFS is smarter as they never sell a sofa for too long. It's discontinued and they re-release it with some minor changes and a new name. Therefore, you can't check and see that over time the prices haven't really fallen, despite numerous 'sales' because it disappears.
I know Amazon has been getting a lot of bad press of late (but, come on, did anyone NOT know how it worked before the media picked up on it?) but as long as I can save LOADS of money, I'll continue to use it.
My last purchase was a Sony NEX-F3 camera. SRP £479 (from Sony's website) and £349 from Amazon, and still qualifying for a further £50 cash back deal. With Amazon Prime, I got free next day delivery - delivered on a Saturday (normally a £7-15 premium in itself).
The customer should
only ever look at the end price and then decide if that price is what they are happy to pay.