The UK’s Competition and Markets Authority (CMA) confirms that supermarket loyalty schemes offer real savings.
- Loyalty programs are widely used across major UK supermarkets, including Tesco and Sainsbury’s.
- CMA’s detailed review found 92% of promotional items provide genuine discounts.
- Despite skepticism, evidence of inflated ‘usual’ prices is minimal, promoting shopper trust.
- Customers can save 17-25% using loyalty schemes, though price comparisons are advised.
The Competition and Markets Authority (CMA) has affirmed that supermarket loyalty schemes in the UK offer legitimate savings, dispelling common public skepticism. These programs, popular among leading supermarkets such as Tesco and Sainsbury’s, provide substantial discounts that are particularly beneficial during times of economic strain.
The extensive review by the CMA, which began in January, scrutinized approximately 50,000 grocery items on promotion. The investigation concluded that a remarkable 92% of these items were indeed sold at lower prices than their regular cost. This finding challenges the perception held by 55% of shoppers who doubted the authenticity of these savings, believing that usual prices might be inflated to make loyalty discounts seem more attractive.
CMA’s report found minimal evidence to support the notion that supermarkets artificially raise ‘usual’ prices to enhance the appeal of their loyalty promotions. This review aims to reassure consumers in the UK, as stated by George Lusty, the CMA’s interim executive director of consumer protection. Lusty 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.“
Despite confirming the legitimacy of these discounts, the CMA advises customers to continue comparing prices across different stores. While loyalty prices are generally some of the most competitive, ensuring the best deal requires a bit of effort in shopping around. George Lusty emphasizes the importance of this by stating, “While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key.“
The CMA’s inquiry also examined whether supermarkets complied with consumer laws concerning the use and collection of customer data during the loyalty program enrollment process. The findings indicated no breaches in these laws, further supporting the fairness of these programs.
With an average saving of 17-25% on products priced through loyalty schemes at supermarkets like Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons, shoppers are encouraged to participate while remaining vigilant about hunting for the best bargains.
The CMA’s review highlights that while loyalty schemes are legitimate, they require sensible consumer vigilance to maximize savings.
