Are you a member of a supermarket loyalty scheme?
If so, do you trust that the loyalty discounts are as good as they seem, and that you are getting a good deal?
The Competition and Markets Authority (CMA) is working to make sure people get a fair deal as they continue to face cost of living pressures. As part of our work in the groceries sector, we’ve been investigating supermarket loyalty pricing and have today published the final report of our investigation.
As part of our investigation, we wanted to check:
- whether promotions can be trusted
- how promotions compare to prices available at other supermarkets
- how accessible these promotions are
- whether consumers are being treated fairly
We asked shoppers how they really feel about loyalty pricing, and found that:
- 68% think that loyalty prices offer good savings for members
- 26% said that loyalty pricing would make them more likely to shop at a particular supermarket
- 40% do not trust that the loyalty price is a genuine saving on the usual price for that product
- 55% said they think that non-member prices during a loyalty price promotion are generally higher than the price usually charged for the product
We analysed around 50,000 grocery products on loyalty price promotions and found very little evidence of supermarkets inflating their usual prices to make loyalty promotions seem like a better deal.
Our messages to shoppers
Loyalty prices offer genuine savings
Our findings reveal shoppers can make an average saving of 17 to 25% compared to the usual price when buying loyalty priced products at the 5 supermarkets examined (Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons).
Shop around for the best deal
Are you a bargain hunter? We found loyalty prices typically beat other supermarkets' regular prices and are often similar to other promotional prices. But we also saw examples of other promotions and regular prices being cheaper for some products so shop around to find the best deals.
Our messages to supermarkets
Supermarkets should:
- read our advice on how to help them stay on the right side of the law
- make sure none of their loyalty price promotions have the potential to mislead shoppers
- consider whether they could do more to make sure that those under 18, customers without smartphones, and people without fixed addresses are not prevented from joining loyalty schemes and accessing cheaper loyalty prices
Find out more
You can read more about the investigation on our loyalty pricing case page.
You can also find out more about what we’re doing to help people get a fair deal as they face the rising cost of living. This update covers our recent work on road fuel prices, groceries, infant formula, vet services, online shopping and housing.
2 comments
Comment by Andrew Orme posted on
What you do not seem to cover is those of us put at a disadvantage because we do not have an adequate mobile phone signal. I tried to join Nectar to get access to savings at Sainsbury, my nearest supermarket. As part of the registration process I had to receive and enter a one-time passcode sent by text. Round here, texts usually get through eventually but not before the passcode has expired. I contacted Nectar by phone to ask if alternative arrangements were available for people in my position. They said not.
Comment by Christine posted on
I recently had the unfairness of the pricing without a loyalty card brought home to me when I forgot to scan my nectar card in Sainsburys. A tube of toothpaste cost £7 and I bought 2 for a total of £14, 100% increase in price over the price paid with a nectar card. When I realised I returned the tubes for a refund and asked if they thought this was a fair practice, and they agreed it was not but said "it's not just Sainsburys, all the supermarkets do it". This unfair pricing would disadvantage my elderly mother and many others like her or with different circumstances. I am surprised that the government investigation into this was not more critical of the practices but I think they have asked the wrong questions. I have loyalty cards for three supermarkets (tesco, sainsburys and waitrose) but this practice does not result in loyalty from me, it results in me wanting to shop elsewhere, like Aldi which doesn't have any cards or vouchers, just good prices. I'll go to Waitrose for things I can't get at Aldi, and very rarely will use the other two, even more so after this recent experience.