British supermarket prices offered through loyalty schemes offer genuine savings, the competition regulator said on Wednesday.
Loyalty schemes such as market leader Tesco’s “Clubcard Prices” and number two retailer Sainsbury’s “Nectar Prices” offer significantly lower prices for members and have proved very successful for the UK’s biggest supermarkets.
The vast majority of UK shoppers now use these schemes and an increasing number of products are covered in these loyalty programmes.
The Competition and Markets Authority (CMA) launched a review in January to consider the impact of these schemes on shoppers.
In July, it said it did not expect to identify widespread evidence of promotions that mislead consumers.
‘Genuine Savings’
The CMA said on Wednesday it had analysed around 50,000 grocery products on promotion and found very little evidence of supermarkets inflating their “usual” prices to make loyalty promotions seem like a better deal.
It found shoppers can make an average saving of 17% to 25% buying loyalty-priced products at the five supermarkets examined – Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons.
George Lusty, the CMA’s interim executive director of consumer protection, 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.
“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.”
However, Lusty noted that the CMA’s review had shown that loyalty prices were not always the cheapest option, and advised customers to shop around.
Shares in Tesco and Sainsburys were up 0.5% and 0.2% respectively in early trading.
As part of its review, the CMA also looked at the way supermarkets collect and use customers’ data when they sign up to a loyalty scheme.
It did not see evidence of consumer law concerns in relation to this.
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