Supermarket loyalty schemes are confirmed to offer real savings by the CMA.
- Loyalty programmes in major UK supermarkets such as Tesco and Sainsbury’s provide notable discounts.
- The CMA’s review found 92% of promotions offer genuine savings against the usual price.
- Despite scepticism from 55% of shoppers, the analysis shows minimal inflation of usual prices.
- Loyalty card prices may not always be the cheapest, urging customers to compare prices across stores.
The Competition and Markets Authority (CMA) has confirmed that supermarket loyalty schemes in the UK are offering legitimate discounts. The confirmation comes amidst growing popularity of these programmes in leading chains like Tesco and Sainsbury’s. These schemes are aimed at providing financial relief to customers during the current cost-of-living crisis.
According to the CMA’s detailed analysis of around 50,000 grocery items, an impressive 92% of loyalty promotions delivered genuine savings against their usual prices. This finding counters the perception held by 55% of shoppers, who believe regular prices are inflated to make loyalty discounts appear more attractive.
George Lusty, interim executive director of consumer protection at the CMA, remarked, “We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly.” His statement reassures consumers that the majority of reviewed prices were authentic.
The study further indicated that while loyalty prices were beneficial, they were not always the absolute lowest option available. Customers seeking maximum savings are advised to shop around and compare costs at different supermarkets to make the most of their money.
In addition to confirming the authenticity of price cuts, the CMA found no evidence of supermarkets breaching consumer laws related to data collection through loyalty schemes. The assurance regarding data use is crucial as privacy concerns remain a significant issue for consumers signing up for such programmes.
The review highlighted potential average savings of 17-25% on products with loyalty pricing at the five supermarkets assessed: Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons. Such savings are a significant draw for the majority of consumers in today’s economic climate.
CMA’s findings reinforce the value of supermarket loyalty schemes, albeit with the suggestion to compare prices for optimal savings.
