Shoppers may be keen to pay more attention to promotional labels after news that they face a postcode lottery on prices in UK stores.

A study by Kelkoo compared the cost of various electrical goods, homeware, stationery, toys and entertainment at different towns in Britain.

It was found that the 'baskets' cost up to £500 more in some locations than they did in others, with Swindon the most expensive place.

Perhaps surprisingly, London was the cheapest city on the list, coming in at £366 below the national average for all the goods put together.

Newcastle and Glasgow were the cities most likely to have the cheapest prices on their peelable labels.

Chris Simpson from Kelkoo commented: "We're not telling people in these locations to stop shopping in the local area but we always encourage consumers to compare prices both online and offline before they make a decision."

Last month, the News of the World reported a survey from mySupermarket.com, which found that the cost of some branded products has increased by an average of 21.5 per cent since the recession.

Denny Bros Ltd, 13 May 11