Day: November 28, 2024

Loyalty pricing: what shoppers and supermarkets need to know

COMPETITION & MARKETS AUTHORITY INVESTIGATION

Are you a member of a supermarket loyalty scheme?  

If so, do you trust that the loyalty discounts are as good as they seem, and that you are getting a good deal? 

The Competition and Markets Authority (CMA) is working to make sure people get a fair deal as they continue to face cost of living pressures. As part of our work in the groceries sector, we’ve been investigating supermarket loyalty pricing and have today published the final report of our investigation.  

As part of our investigation, we wanted to check: 

  • whether promotions can be trusted 
  • how promotions compare to prices available at other supermarkets  
  • how accessible these promotions are  
  • whether consumers are being treated fairly 

We asked shoppers how they really feel about loyalty pricing, and found that:  

  • 68% think that loyalty prices offer good savings for members 
  • 26% said that loyalty pricing would make them more likely to shop at a particular supermarket 
  • 40% do not trust that the loyalty price is a genuine saving on the usual price for that product 
  • 55% said they think that non-member prices during a loyalty price promotion are generally higher than the price usually charged for the product 

We analysed around 50,000 grocery products on loyalty price promotions and found very little evidence of supermarkets inflating their usual prices to make loyalty promotions seem like a better deal. 

Our messages to shoppers: 

Loyalty prices offer genuine savings 

Our findings reveal shoppers can make an average saving of 17 to 25% compared to the usual price when buying loyalty priced products at the 5 supermarkets examined (Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons). 

Shop around for the best deal 

Are you a bargain hunter? We found loyalty prices typically beat other supermarkets’ regular prices and are often similar to other promotional prices. But we also saw examples of other promotions and regular prices being cheaper for some products so shop around to find the best deals. 

Our messages to supermarkets

Supermarkets should:  

  • read our advice on how to help them stay on the right side of the law 
  • make sure none of their loyalty price promotions have the potential to mislead shoppers  
  • consider whether they could do more to make sure that those under 18, customers without smartphones, and people without fixed addresses are not prevented from joining loyalty schemes and accessing cheaper loyalty prices 

Find out more 

You can read more about the investigation on our loyalty pricing case page.  

You can also find out more about what we’re doing to help people get a fair deal as they face the rising cost of living. This update covers our recent work on road fuel prices, groceries, infant formula, vet services, online shopping and housing. 

New multi million pound National Lottery programmes set to power up Scotland’s communities

The National Lottery Community Fund has opened a new £166 million funding stream that will give Scotland’s communities a much needed boost over the next five years.

With a focus on building the strengths of people and communities in greatest need, community groups across the country can now apply to share these life changing funds.

The two new programmes, Community Action and Fairer Life Chances, are aimed at helping communities to tackle poverty, disadvantage, and discrimination, three of the biggest barriers to people and communities finding their power and agency.

They will award bigger and longer grants than previous funds giving community groups more security over a longer term, and they will fund organisations of different sizes and levels of experience.

Both programmes will help The Fund to deliver its UK wide strategy ‘It starts with community‘ by focusing on four mission areas.

Community Action will support projects that help communities of all shapes and sizes, including those who are geographically dispersed, to come together around activities that matters to them, or which help communities to be environmentally sustainable.

Fairer Life Chances is for projects providing services that support children, young people and families, or that help people to be healthier or have better access to support.

Organisations applying to the new programmes will be expected to show how their project fills a gap, how it will reach and support people and communities experiencing poverty, disadvantage, and discrimination and how it will involve their voices and makes use of their skills and experience.

They must also show how their project makes a difference and how they will measure that impact.

Announcing the news yesterday, Kate Still, Scotland Chair of The National Lottery Community Fund, said: “We’re delighted to open these new funding programmes which were developed with and for Scotland’s essential community and voluntary sector. Over the next five years we want to support activity that inspires community action and leads to fairer life chances for those most vulnerable in our society.

“That’s why our new programmes will invest most where the need is greatest, reaching people and communities across Scotland that are experiencing poverty, discrimination and disadvantage. We’ll do this by funding projects that build on the strengths within communities and which give people more agency and control over their lives and the activities and services that support them.

“None of this would be possible without National Lottery players who can take pride in knowing that their contribution will make a huge difference to the lives of people up and down the country.”

This year marks 30 years since the first National Lottery draw in 1994. Thanks to National Lottery players, The National Lottery Community Fund has awarded £1.9 billion to over 46,000 charities and community groups in Scotland during that time.

Jack preparing soup at The Usual Place

One project already empowering young people with additional support needs is The Usual Place in Dumfries, which is using its National Lottery grant of £199,852 to run accredited training programmes in food, drink and hospitality.

Craig McEwen, Chief Executive of The Usual Place said: “We welcome these new funding programmes from The National Lottery Community Fund, which represent a transformative step toward sustainable support for third sector organisations.

“In today’s rapidly changing funding landscape, we are crying out for multi-year, equity-based funding to provide essential stability for organisations like ours. It would allow us to plan with confidence, reach more young people with additional support needs and make long-term investments in meaningful solutions for those facing poverty, disadvantage, and discrimination.

“This approach goes beyond financial security; it reflects the value of lived experience and the importance of amplifying community voices in shaping impactful, responsive services.

“We’re excited to see how they this new funding will empower organisations like ours to deepen our work, build on our strengths, ensure that every individual we serve has a voice in shaping their own future and help create a fairer future for all.”

Community Action and Fairer Life Chances opened to applications yesterday – Wednesday 27 November.

Groups with ideas for funding are encouraged to get in touch to discuss their idea by email at advicescotland@tnlcommunityfund.org.uk, or by phone on 0300 123 7110 (open from 9am to 5pm, Monday to Friday).

For more information on all funding available from The National Lottery Community Fund visit https://www.tnlcommunityfund.org.uk/funding/scotland