Supermarket loyalty schemes are confirmed to provide real savings, according to the Competition and Markets Authority.
- Popularity of loyalty programmes is surging amidst the UK’s cost-of-living crisis, with major chains like Tesco and Sainsbury’s taking the lead.
- Despite scepticism among consumers about inflated ‘usual’ prices, the CMA found 92% of promotions offer actual savings.
- The CMA’s investigation found no breaches of consumer law in data usage by supermarkets in these schemes.
- While loyalty prices are beneficial, shoppers are encouraged to compare prices for additional savings.
The Competition and Markets Authority (CMA) has verified that supermarket loyalty schemes offer real financial benefits to shoppers. This affirmation comes as part of an extensive review initiated to address consumer doubts about the authenticity of savings promised by these schemes.
As the cost-of-living crisis intensifies, more consumers are flocking to loyalty programmes offered by leading supermarkets, including Tesco and Sainsbury’s. These programmes are designed to offer significant discounts, making them attractive to budget-conscious shoppers across the UK.
A detailed analysis by the CMA revealed that 92% of the loyalty promotions on approximately 50,000 grocery items indeed provide genuine savings when compared to their regular prices. This finding dispels concerns held by 55% of shoppers regarding inflated ‘usual’ prices, suggesting these perceptions are largely unfounded.
George Lusty, CMA’s interim executive director of consumer protection, highlighted the findings saying, “We found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.” Lusty advised consumers to remain vigilant in shopping around, as loyalty prices, though valuable, are not always the lowest available.
Supermarkets examined in the CMA’s review include Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons, where shoppers can save between 17-25% through loyalty prices. The review also ensured that consumer laws regarding data collection and usage were upheld, adding a layer of consumer protection assurance.
A statement from Tesco expressed satisfaction with the CMA’s findings, emphasising the company’s commitment to offering true savings. Their extensive range of loyalty-priced products, which can include up to 8,000 items weekly, reportedly helps customers save significantly on groceries.
Amid these discussions, the British Retail Consortium issued a caution regarding potential future increases in food inflation, which could impact consumer savings.
The CMA’s findings highlight the genuine value of supermarket loyalty schemes, though prudent price comparisons remain advisable.
