The Competition and Markets Authority (CMA) has confirmed the authenticity of savings offered by supermarket loyalty schemes, dispelling widespread consumer scepticism.
The CMA undertook a thorough investigation into the pricing strategies of loyalty schemes across five major supermarkets. This included an analysis of approximately 50,000 grocery products offered under loyalty price promotions. The findings revealed that 92% of these items represented genuine savings, contradicting the belief held by 55% of consumers that supermarkets inflate usual prices to enhance the appeal of loyalty discounts.
Across supermarkets like Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons, consumers can anticipate average savings of 17% to 25% when purchasing items at loyalty prices. However, the CMA advises shoppers to compare prices across different stores as loyalty prices, while often among the lowest, are not invariably the cheapest option.
Despite the positive findings regarding pricing, the CMA highlighted areas for improvement, particularly in the accessibility of loyalty programmes. It suggested that supermarkets could better facilitate access for underrepresented groups, including minors, individuals without smartphones, and elderly shoppers.
George Lusty, interim executive director of consumer protection at the CMA, emphasised the thoroughness of the investigation, which aimed to address consumer mistrust of loyalty card pricing. He stated, “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. After analysing tens of thousands of products, 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.”
Furthermore, a spokesperson from Tesco expressed satisfaction with the CMA’s findings, reinforcing the company’s commitment to providing real savings through its loyalty scheme. “Clubcard Prices has always been about offering genuine savings and rewards to our customers, and we are pleased that this has been evidenced by the CMA,” they stated.
Overall, while the CMA’s investigation supports the integrity of loyalty scheme discounts, it still advises consumers to exercise caution and compare prices to maximise savings.
The CMA’s investigation has reaffirmed the legitimacy of savings available through supermarket loyalty schemes, offering reassurance to consumers. Nevertheless, it remains prudent for shoppers to engage in price comparisons to ensure they secure the best deals available.
