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 pricesgroceriesinfant formulavet servicesonline shopping and housing

#Supermarkets4Change: youth campaign on supermarket access

Youth-led campaign aims to raise awareness of young carers to supermarkets during lockdown

Members of the Scottish Youth Parliament have started a campaign on the issue of supermarket access for young carers and young adult carers during this Coronavirus (COVID-19) lockdown.

This campaign has been set up by Ilse Cuthbertson MSYP, Carers Trust Scotland and Aaran McDonald MSYP, Cunninghame South.

During lockdown, a significant and recurring issue raised by young carers is that some are still not getting access to supermarkets during protected hours set aside for vulnerable groups.

Young carers are facing age discrimination and refusal to access if they are accompanied by family members. 

One young person got in touch with their MSYP, and said: “After waiting in the long queue, a member of staff said they were only allowing 2 people into the store per family. After explaining I am a young carer, the staff member still couldn’t understand why there needed to be two carers. 

“I had to further explain my caring responsibilities for my brother and mum before the member of staff finally allowed us in. This was an emotional and frustrating situation and no young carer should need to go through this.”

There is also inconsistency of messaging by supermarkets across the UK, and even from store to store.  Furthermore, a number of carers are struggling to get access to online shopping or difficulty meeting the minimum expenditure for online shopping. This issue also intertwines with carer identification.

#Supermarkets4Change aims to raise awareness of unpaid carers with local supermarkets and to include these young people in the protected hours set aside for vulnerable groups.

MSYPs have written to local supermarket stores on behalf of their constituents, raising awareness of who young carers are, and why it is important to include these young people in dedicated shopping times.

Ilse Cuthbertson, MSYP and Aaran McDonald, MSYP said: “We wanted to start #Supermarkets4Change as young carers and young adult carers have been approaching us due to the lack of understanding within supermarkets.

“We have learnt that this is not just an issue locally but nationally. This is an extremely important issue right now. We hope that supermarkets will start to understand the role that a young carer or young adult carer has.”

This campaign also aims to empower young people to take action. MSYPs have created a template letter and are sharing this with as many young people as possible.

If a young person is aware of this issue in their local community, they can use this template to write to the local store manager. Young people are encouraged to share this on social media using the hashtag #Supermarkets4Change so we can raise greater awareness!

Young people can also get in touch with Ilse and Aaran for support on this:

Keep up to date with the campaign on social media: @ReleaseCap/ @CarersTrustScot/ @ilsecmsyp / @MSYPAaran/ #Supermarkets4Change