Britain’s competition watchdog, the CMA, affirms that supermarket loyalty schemes offer real savings.
- Loyalty programmes have gained traction among UK supermarket giants amid economic challenges.
- Analysis of 50,000 products reveals 92% of loyalty discounts are genuine.
- Consumer trust in loyalty pricing remains varied, yet evidence shows fair practice.
- Loyalty savings aren’t always the lowest, urging consumers to compare options.
The Competition and Markets Authority (CMA) has confirmed that supermarket loyalty schemes indeed provide genuine savings. This comes after an extensive review involving around 50,000 promotional grocery items, with findings indicating that 92% of these items truly offer discounts compared to their usual prices. Such schemes have surged in popularity across major UK supermarket chains, including names like Tesco and Sainsbury’s, especially amidst a challenging economic climate.
Despite public skepticism — with 55% of consumers suspecting potential price inflation of ‘usual’ prices to make loyalty deals look better — the CMA’s investigation found scant evidence to support this view. George Lusty, the CMA’s interim executive director of consumer protection, acknowledged the prevalent distrust, stating, “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.”
Further insights from this review reveal that while loyalty prices are generally competitive, they might not always present the cheapest option available. Shoppers can potentially save between 17% to 25% on loyalty-priced items. The CMA’s findings suggest shoppers can maximise their savings by comparing prices across various outlets.
Importantly, the review also assessed whether supermarkets respected consumer laws in terms of data collection and utilisation associated with loyalty programmes. No breaches were found, thereby reinforcing the legitimacy of these schemes. Despite these findings, external factors such as potential food inflation, as recently alerted by the British Retail Consortium, might influence future pricing dynamics.
While supermarket loyalty schemes offer significant savings, consumers are encouraged to shop around for the best deals.
