PRICED OUT?
Huge investigation into loyalty prices at supermarkets like Tesco and Sainsbury’s reveals if they can save you money
Find out what supermarkets were included in the investigation below
A MASSIVE investigation in to loyalty prices has revealed whether they offer genuine savings for shoppers.
Analysis of 50,000 products at major supermarkets by the Competition and Markets Authority (CMA) looked at if they were cheaper than retailer's usual prices.
1
The market regulator found 92% of the items did in fact offer customers legitimate discounts.
Loyalty pricing is when shops offer customers discounted products if they sign up to a rewards scheme. Those who are not signed up pay more.
A number of supermarkets offer loyalty prices, including Tesco, Sainsbury's and Morrisons.
The CMA launched an investigation into supermarket loyalty pricing after consumer group Which? raised concerns that they did not offer genuine value for money.
Read more on Retail
The regulator's analysis of 50,000 products which come with loyalty prices found little evidence of supermarkets inflating prices to make loyalty promotions seem like a better deal.
George Lusty, interim executive director of consumer protection at the CMA, said: "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."
The CMA's deep dive saw it analyse loyalty priced products at five major supermarkets: Tesco, Sainsbury's, Waitrose, Co-op and Morrisons.
Most read in Money
It found customers can save an average of 17% to 25% by buying loyalty priced items at these retailers.
LOYALTY SHAKE-UP
Despite the saving, it doesn't always mean that loyalty prices are the cheapest overall though, the CMA found.
Mr Lusty added: “While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key.
"By checking a few shops, you can continue to stretch your hard-earned cash.”
The regulator also concluded supermarkets could do more to open up loyalty schemes to a wider group of people, including those without smart phones, like the elderly, and under 18s.
Responding to the CMA's investigation, Sue Davies, Which? head of food policy said: "Two-tier loyalty pricing has become a common practice across retailers.
What is loyalty pricing?
You may have heard of loyalty pricing, but do you know what it is?
Sainsbury's, Tesco and Morrisons are three supermarkets that offer customers signed up to their loyalty schemes exclusive discounts - known as loyalty pricing.
All three retailer's schemes, Nectar Card, Clubcard and More Card, are free to sign up to as well.
The obvious advantage to loyalty pricing is that you can save potentially hundreds of pounds a year on your shopping, all without spending a penny.
But different supermarkets offer exclusive discounts on different products, so do some research before doing your shopping.
Either way, be wary of supermarkets artificially inflating prices to make it seem like you're getting a better deal than you are.
A previous investigation by consumer group Which? found Sainsbury's and Tesco have increased the price of everyday goods then slapped loyalty prices on them thinking customers wouldn't notice.
Either way, it's worth shopping around though.
Supermarkets change their prices all the time, sometimes multiple times daily, so it's worth researching to ensure you're getting the best price on an item.
You can use websites like Trolley to see how the major supermarket's compare in terms of price on any number of goods.
"It’s therefore reassuring that the CMA has found that most of the prices it looked at across supermarkets offered genuine savings against the usual price.
"However, it stresses that it is worth shopping around as they aren’t always the cheapest option.
"Which? has also looked at prices for thousands of products and repeatedly found examples of loyalty price offers that aren't as good as they seem."
She added: "The CMA should continue to monitor loyalty pricing practices across key consumer sectors beyond supermarkets and be ready to use its new powers to take action against retailers that don’t comply with consumer law."
The CMA's investigation came after a Which? investigation found millions are being locked out of cheaper prices at the supermarket because they can't sign up to the schemes.
The consumer website found three major restrictions mean customers can't get the best prices.
Which? discovered shoppers are being shut out due to minimum age restrictions, lack of UK residency or address and not having an email address or app.
A separate investigation by The Sun found a number of retailers that only let shoppers sign up to their loyalty schemes through an app, including Lidl and Asda.
Customers aren't just locked out of supermarket loyalty schemes either.
Fashion chain H&M only lets customers sign up to its membership scheme online or by downloading the store's app.
Fast food fans can only sign up to McDonald's MyMcDonald's scheme via an app too.
As part of the CMA's investigation, it also carried out a major survey of customers to find out what they thought about loyalty pricing at supermarkets.
It revealed 76% of shoppers have not changed where they shop just because of the introduction of loyalty pricing but 24% now compare prices across different retailers more.
READ MORE SUN STORIES
Meanwhile, 55% believed supermarkets to be inflating prices on loyalty priced products for non-rewards scheme members.
In addition, 43% of those surveyed said they thought it was unfair loyalty scheme shoppers pay lower prices than those not signed up to rewards schemes.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Plus, you can join our Facebook group to share your tips and stories
Topics