The CMA’s analysis confirms loyalty schemes offer real savings.
- Supermarkets like Tesco and Sainsbury’s provide significant discounts.
- 92% of items reviewed offered genuine savings on usual prices.
- Half of shoppers believed prices were inflated despite findings.
- Shopping around remains crucial for the best deals.
The Competition and Markets Authority (CMA) has verified that supermarket loyalty schemes provide authentic savings for consumers. This was confirmed after an in-depth review involving approximately 50,000 promotional grocery items. Customers of leading chains such as Tesco and Sainsbury’s have reportedly benefitted from notable discounts, crucial during the current cost-of-living crisis.
Although 92% of the reviewed items showed genuine savings compared to their regular prices, there is a prevalent perception among 55% of shoppers that these ‘usual’ prices might have been increased to make the promotions seem more appealing. According to the CMA, however, there is limited evidence supporting this notion.
CMA interim Executive Director, George Lusty, acknowledged the public’s skepticism regarding loyalty card pricing. Lusty stated, “We found that almost all the loyalty prices reviewed offered genuine savings against the usual price… shopping around is still key.” This suggests that while loyalty discounts are among the best deals available, comparing prices across different stores remains essential.
The CMA’s investigation into five major supermarkets—Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons—revealed that consumer law compliance was upheld, particularly in how data is managed when customers sign up for loyalty programmes. Shoppers could achieve savings of 17% to 25% on products priced with loyalty in mind.
A Tesco representative expressed satisfaction that their loyalty offerings, which cover approximately 8,000 products weekly, have been validated by the CMA’s findings. Such initiatives reportedly help customers save significantly on their shopping bills, sometimes over £385 annually.
Despite genuine savings, consumers should continue seeking competitive prices by comparing offers.
