Supermarkets Under Fire for Dodgy Loyalty Deals
Tesco and Sainsbury’s loyalty schemes are in the hot seat. A new investigation by consumer watchdog Which? raises serious doubts about the real value of their member-only discounts. Shoppers could be paying more than they think, with some even locked out of the perks entirely.
Are Loyalty Prices a Big con?
Which? has handed its findings to the Competition and Markets Authority (CMA), demanding a probe into whether these supermarket giants are hiking “regular” prices just to make loyalty discounts look bigger. Their detailed study tracked 141 products across Tesco’s Clubcard and Sainsbury’s Nectar schemes over six months.
Shockingly, nearly a third (29%) of so-called ‘member promotions’ were actually priced at what supermarkets claim to be the “regular” price less than half the time. It’s a classic bait-and-switch.
Spotlight on Sainsbury’s Coffee Scam
One jaw-dropping example: Sainsbury’s offered Nescafé Gold Blend Instant Coffee (200g) at £6 for Nectar members, boasting a £2.10 saving on a “regular” £8.10 price. But in truth, the standard price had just been upped from £6 two days earlier. Meaning? No real discount at all.
Loyalty Cards Aren’t for Everyone
The report also slammed exclusivity in loyalty schemes. Not everyone can sign up – many face age limits, address checks, and digital hoops. This unfairly blocks young parents, school kids, and people in temporary housing from scoring lower prices that used to be open to all.
“I agree these deals attract customers like me, but it feels like prices are just hiked first, and then the member price becomes the norm,” one shopper told Which?.
Which? Demands Full Transparency
Which? is calling for supermarkets to clean up their act, making loyalty offers clear and honest. They want the CMA to crack down on gimmicky dual pricing and fix the unfair exclusion of vulnerable groups from member-only savings.
Sue Davies, Which? Head of Food Policy, blasted: “It’s not surprising shoppers are suspicious of supermarket loyalty deals when up to a third aren’t all they’re cracked up to be.”
John Lewis Bucks the Trend with Improved Performance
While supermarkets scrape the barrel, John Lewis Partnership reported a boost in performance. Losses before tax shrank by 14%, with a strong £1.3 billion liquidity cushion. More customers and sales points to hope.
However, inflation forces a delay on their Partnership Plan, stretching from 2025/26 to 2027/28. The focus is on cutting costs and upping productivity.
Waitrose, part of the John Lewis family, saw sales rise 4% to £3.7 billion thanks to price cuts and fresh partnerships. John Lewis itself showed mixed fortunes — beauty and fashion sales soared, but big-ticket buys like home tech took a hit.
