Supermarket Loyalty Pricing: Genuine Savings or a Sneaky Strategy?

• 92% of loyalty-priced items offer discounts, but shoppers warned to compare prices
• Competition and Markets Authority (CMA) finds savings of up to 25% but highlights potential pitfalls
• CMA analysis of 50,000 loyalty-priced products from major UK chains like Tesco, Sainsbury's, and Morrisons
• Shoppers still urged to shop around as loyalty prices aren't always the lowest option

Supermarket loyalty pricing can offer genuine savings to UK shoppers, with an analysis by the Competition and Markets Authority (CMA) revealing that 92% of loyalty-priced products deliver discounts, often up to 25% off the standard price. However, shoppers are being advised to keep their wits about them, as prices may not always be as low as they seem.

The CMA's review of 50,000 loyalty-priced items across supermarkets such as Tesco, Sainsbury's, Morrisons, Waitrose, and Co-op found that while the discounts are legitimate, they aren’t necessarily the cheapest option available. The study suggests that consumers should still compare prices to ensure they are getting the best deal.

George Lusty, interim executive director of consumer protection at the CMA, explained: "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. While these discounts are legitimate, our review has shown that loyalty prices aren't always the cheapest option, so shopping around is still key."

While the CMA's investigation found significant savings of between 17% and 25% on loyalty-priced products, it also noted that some shoppers remain sceptical. A CMA survey revealed that 55% of consumers suspect supermarkets may be raising regular prices to make loyalty deals appear more appealing. Despite the potential for savings, 76% of shoppers haven’t changed their shopping habits, but 24% are now more likely to compare prices.

Additionally, the CMA highlighted the need for better access to loyalty schemes, suggesting that supermarkets could do more to accommodate people who don’t use smartphones or are under 18. Solutions could include in-store or phone-based sign-ups and lowering the minimum age requirement.

"While loyalty schemes can offer real savings, it's clear that savvy shoppers still need to compare prices across supermarkets. These discounts are certainly attractive, but it’s essential to keep an eye on the bigger picture to avoid missing out on even better deals."