The Competition and Markets Authority (CMA) has provided reassurance to UK shoppers, confirming the legitimacy of savings offered through supermarket loyalty schemes.
After an extensive review encompassing approximately 50,000 grocery items across five major supermarket chains, the Competition and Markets Authority (CMA) has determined that loyalty schemes offer shoppers genuine savings. Despite concerns from over half of consumers that regular prices are inflated to make discounts seem more attractive, the authority found that 92% of the offers indeed represented real savings, ranging between 17% and 25% on average.
The supermarkets involved in this analysis were Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons. These findings come at a time when consumer trust in loyalty card pricing is wavering. The CMA’s interim executive director of consumer protection, George Lusty, noted that their investigation sought to address whether these supermarkets were treating their customers fairly. He expressed hope that their findings will provide much-needed reassurance to shoppers across the country.
While the discounts were confirmed to be genuine, the CMA advised consumers to continue comparing prices across different shops, as loyalty prices, although generally competitive, were not always the most economical option available. This insight underscores the importance of vigilance for consumers aiming to maximise their savings.
Additionally, the CMA’s report highlighted potential areas for improvement regarding the accessibility of these loyalty schemes. It suggested that supermarkets could enhance their efforts to make these programmes more inclusive, particularly for groups like under-18s, individuals without smartphones, and older adults. Despite these areas needing attention, the report did not identify any issues with how supermarkets handle consumer data associated with the schemes.
Reacting to the findings, a spokesperson for Tesco commented positively on the CMA’s report, emphasising their commitment to providing real savings for customers through their loyalty programme. They asserted that their initiative helps shoppers save significantly on their annual grocery expenditure.
This investigation aligns with the broader consumer desire for transparency and fairness in pricing, particularly amidst economic challenges that heighten the importance of every pound spent.
The CMA’s findings offer a sense of transparency in loyalty schemes, dispelling doubts about inflated supermarket pricing. However, consumers are encouraged to remain discerning, maintaining the habit of comparing prices to ensure they are getting the best deals possible.
