The Competition and Markets Authority (CMA) has released findings that confirm loyalty-priced promotions at major supermarkets offer genuine savings to shoppers, providing reassurance amidst ongoing cost-of-living pressures. After conducting a comprehensive investigation into the pricing practices of five leading UK supermarkets—Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons—the CMA found little evidence of inflated ‘usual’ prices used to exaggerate loyalty discounts.
Genuine Savings Backed by Rigorous Analysis
The CMA analysed approximately 50,000 grocery products featured in loyalty price promotions and concluded that 92% of these items offered a legitimate saving against their usual prices within the same store. On average, shoppers can benefit from a 17-25% discount when purchasing loyalty-priced products.
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.”
However, Lusty highlighted that loyalty prices aren’t always the cheapest option available, stressing the importance of shopping around to maximise savings:
“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.”
Key Findings from the CMA Review
The CMA’s investigation aimed to address shopper concerns about loyalty pricing, transparency, and accessibility. Key takeaways include:
- Genuine savings: 92% of products analysed offered true discounts against their usual prices.
- Average savings: Loyalty-priced products provided savings of 17-25% across the five supermarkets.
- Comparison shopping matters: Loyalty prices, while competitive, are not always the lowest available.
- Limited impact on shopping habits: While 76% of shoppers said loyalty pricing has not changed where they shop, 24% now compare prices more actively.
- Mixed perceptions of fairness: 43% of surveyed consumers felt it was unfair that loyalty members benefit from lower prices, while 55% suspect non-member prices are inflated.
- Data concerns minimal: Only 7% of shoppers cited personal data usage as a reason for not joining loyalty schemes.
Accessibility Challenges: Room for Improvement
The CMA also examined the accessibility of loyalty schemes, particularly for groups who may struggle to participate, such as elderly shoppers or those without smartphones. While no breaches of consumer law were identified, the review found that some supermarkets could improve inclusivity by offering offline sign-up options, such as in-store or telephone registration, and by reconsidering age restrictions for membership.
Trust and Transparency: A Positive Step Forward
Importantly, the CMA’s review alleviates concerns around the use of customer data, confirming that supermarkets’ loyalty schemes meet consumer protection standards. Despite lingering perceptions around fairness and pricing strategies, the findings provide much-needed clarity for shoppers, reinforcing that loyalty prices are, for the most part, genuine deals.
What This Means for Shoppers
For consumers, the message is clear: loyalty schemes can deliver meaningful savings, but smart shopping remains essential. By comparing prices across stores and remaining vigilant, shoppers can make the most of their loyalty memberships and stretch their budgets further.
Next Steps for Supermarkets
The CMA’s findings call on supermarkets to:
- Improve accessibility for shoppers without smartphones or under-18s.
- Offer alternative sign-up methods, such as offline registration.
- Ensure transparency around loyalty pricing and data usage to build greater trust.
As the cost-of-living crisis continues to impact households across the UK, the CMA’s findings serve as a reminder that while loyalty schemes offer real benefits, shoppers must remain proactive in seeking the best value for their money.
