The UK’s competition watchdog, the Competition and Markets Authority (CMA), has found that supermarket loyalty card promotions do offer genuine savings, but customers should still shop around to ensure they are getting the best deal. After analyzing 50,000 products across major UK supermarkets, including Tesco, Sainsbury’s, Morrisons, Co-op, and Waitrose, the CMA found that about 90% of loyalty promotions provided genuine savings of between 17% and 25% on the usual in-store price.
Despite these savings, the CMA also reported that many consumers remain skeptical about loyalty pricing. Around 40% of shoppers do not trust that loyalty card promotions are genuine savings, with younger people, especially those aged 18 to 29, more likely to believe that non-loyalty prices have been artificially inflated. This age group often feels that the price for those without a loyalty card or app is higher than normal, even during promotions.
The report highlighted that while loyalty pricing — where a product has two prices, one for loyalty card holders and a regular price for others — offers legitimate savings, it is not always the cheapest option. The CMA emphasized that shopping around remains important, as loyalty promotions aren’t guaranteed to be the best deal available.
Additionally, the report did not draw conclusions about Asda and Aldi, with Asda’s loyalty scheme providing points rather than price discounts, and Aldi and Lidl being excluded due to their limited range of branded products and lack of online presence for comparison.
Consumer group Which? welcomed the CMA’s findings but pointed out that it has previously found instances where loyalty promotions are not as good as they seem. They also raised concerns about millions of consumers being excluded from loyalty schemes, as they have not signed up for loyalty cards or apps.
To help shoppers navigate loyalty promotions and ensure they are getting the best deal, the CMA provided some tips:
- Know your regular prices: Familiarize yourself with the cost of items you buy often to spot whether loyalty promotions are offering a genuine saving.
- Compare prices per 100g: Look at the price per unit to make sure the loyalty deal isn’t just a marketing trick.
- Stick to your budget: Some loyalty offers may encourage overspending, so make sure you don’t exceed your budget.
- Stock up on essentials: Take advantage of discounts on long-lasting items like pasta or rice.
- Use comparison tools: Apps that compare supermarket prices can help you track prices and find the best deals.
Overall, the CMA’s investigation reassures consumers that loyalty cards can offer legitimate savings, but it also encourages vigilance and the importance of comparing prices to ensure the best possible value.