'Supermarket loyalty scheme prices are an outrage. Shoppers need a new deal to make big savings'

'Supermarket loyalty scheme prices are an outrage. Shoppers need a new deal to make big savings'
British farmers facing 'IMPOSSIBLE' life due to cheap supermarket demands
GB NEWS
Patrick O'Donnell

By Patrick O'Donnell


Published: 03/03/2024

- 06:00

Supermarkets like Sainsbury’s and Tesco are known for their loyalty schemes but the savings made through them are not as good as they seem, writes Patrick O’Donnell

Supermarket shoppers have been ripped off over the last couple of years and it's time consumers got a better deal.

Tesco Clubcard, Co-op Membership and Sainsbury’s Nectar points have become part of most shoppers' routine when it comes to making a grocery trip.


Shoppers buy products, they pick up points from those purchases and these loyalty points give them money off items or outings.

As part of the new supermarket status quo, two different prices are advertised: one for cardholders and one for non-cardholders.

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Woman looking annoyed and Tesco Clubcard

Supermarkets are scamming shoppers, writes Patrick O'Donnell

GETTY

At face value, these loyalty cards are a great way for families to make regular savings and slash the cost of their supermarket shop. In reality, it’s not all it’s cracked up to be.

Under schemes such as Tesco Clubcard, discounted prices are advertised for members of the loyalty scheme whereas non-members have to pay “full price”.

However, rather than offering a substantial discount to loyal customers, these schemes penalise the consumers who have not signed up.

Last year, consumer champion Which? analysed 141 Tesco Clubcard and Sainsbury's Nectar card prices and monitored their pricing history back six months.

The watchdog discovered that almost a third were at their so-called “regular” price for less than half that time.

For example, Sainsbury’s promoted a jar of Nescafé Gold Blend Instant Coffee (200g) for £6 with a Nectar card which equates to a saving of £2.10 on the “regular” price of £8.10.

However, the regular price had also been £6 at the supermarket until rose to £8.10 just two days before the Nectar price launched.

Tesco also advertised found Heinz Salad Cream (605g) with a Clubcard price of £3.50 and a “regular” price of £3.90.

Sainsbury's store / fruit in Sainsbury's

Research from Which? has shed new light into whether consumers benefit from loyalty schemes

GETTY/SAINSBURY'S

Despite this, the regular price had been £2.99 for several weeks before it was increased to £3.90 – only 22 days before the Clubcard promotion. Based on Which?’s research regular prices change right before the loyalty card promotion, were more expensive than at other supermarkets and only available for a very short amount of time.

I think consumers are effectively being held hostage by supermarkets who are keen to mine their customer’s data instead of assist communities through the cost of living crisis.

Furthermore, with the death of the high street, many communities have no other option but to rely on supermarket chains. This lack of competition means there is less incentive for these conglomerates to offer decent prices with the risk of monopolisation becoming a real possibility.

This raid on peoples’ pockets comes as families have been forced to contend with inflation-hiked prices for goods and services. The weekly shopping trip has become more expensive while the supermarkets are escaping scrutiny as they hide behind their loyalty scheme “deals”.

Households are being punished for not signing up to each company’s loyalty scheme, at a time when they need as much help as they can get. After the last couple of years, , shoppers deserve a new deal but this can only be brought about by the Government and regulators taking the supermarkets to task.

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