The Competition and Markets Authority (CMA) confirms that loyalty programs in five major UK supermarkets offer real savings, although consumer skepticism persists.
- A comprehensive review of 50,000 grocery items across Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons shows 92% offer genuine discounts.
- Consumers can potentially save between 17% and 25% with loyalty pricing, despite doubts about inflated regular prices.
- There’s no evidence of supermarkets violating consumer laws in data usage for loyalty schemes.
- Room for improvement in loyalty program accessibility for minors, those without smartphones, and elderly customers.
The Competition and Markets Authority (CMA) conducted a thorough examination of loyalty schemes across five major UK supermarkets: Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons. The study revealed that nearly all loyalty-priced products do provide genuine savings. According to the CMA, 92% of the items observed were priced lower than their usual prices, alleviating concerns that regular prices might be inflated to enhance the perception of discounts.
On average, customers participating in these loyalty schemes can achieve savings ranging from 17% to 25%. This finding challenges the notion held by 55% of consumers that standard prices are manipulated to make these deals seem more appealing. The CMA’s analysis reassures consumers that they are indeed receiving real value through these programs.
Despite these positive findings, the CMA advises consumers to remain vigilant shoppers. Although loyalty prices generally offer substantial discounts, they are not always the lowest available. George Lusty, CMA’s interim executive director of consumer protection, emphasizes the importance of comparing prices across stores to ensure maximum savings.
The investigation also looked into the legal aspects of how supermarkets collect and use customer data through these loyalty schemes. The CMA found no evidence of consumer law violations. However, it noted that supermarkets could enhance these programs’ accessibility, particularly for certain groups such as minors, individuals without smartphones, and the elderly, ensuring broader inclusivity.
A spokesperson from Tesco highlighted the benefits of their Clubcard Prices, underscoring their commitment to providing legitimate savings and rewards. They claimed that with around 8,000 products included in their weekly Clubcard Prices, customers could potentially save a significant amount annually, echoing the CMA’s findings.
The CMA’s findings confirm the legitimacy of supermarket loyalty savings, but consumers are encouraged to continue shopping strategically for the best deals.
