Supermarkets Under Fire Over Dodgy Loyalty Deals
Tesco and Sainsbury’s face fresh heat as consumer watchdog Which? reveals some loyalty offers may be bogus. The investigation warns that discounts might not be as great as shoppers think, with some customers even locked out from joining loyalty schemes. Fair play in grocery retail is under the microscope.
Are Supermarkets Fiddling Prices to Fake Discounts?
Which? has passed its findings to the Competition and Markets Authority (CMA), urging a probe into whether supermarkets are hiking their “regular” prices to make loyalty card savings look bigger. This comes amid rising concerns over promotions tied to loyalty cards.
The watchdog analysed 141 Clubcard and Nectar prices over six months at Tesco and Sainsbury’s. Shockingly, 29% of member-only deals were shown at “regular” prices that were in place for less than half that time, suggesting inflated baseline costs.
Example of Discount Drama: Coffee Con
One glaring case involved Sainsbury’s Nescafé Gold Blend Instant Coffee (200g). It was advertised at £6 with a Nectar card, boasting a £2.10 saving from a “regular” £8.10 price. But just two days earlier, the “regular” price jumped from £6 to £8.10 – making the discount meaningless. Meanwhile, other supermarkets offered it cheaper.
Loyalty Schemes Lock Out Key Shoppers
Not everyone can sign up. Restrictions based on age, address, and digital access exclude groups like young parents, kids, and those in temporary housing. This leaves many unable to tap into member-only prices once available to all.
A shopper told Which?, “These deals lure me in, but it feels like prices are just raised so the so-called member discount becomes the norm.”
Which? Demands Transparency and Fair Play
Which? calls on supermarkets to stop misleading customers with inflated prices and exclusive deals. They want the CMA to crack down on this rising trend of dual pricing and the unfair exclusion of vulnerable shoppers.
Sue Davies, Which? Head of Food Policy: “It’s not surprising that shoppers are questioning whether supermarket loyalty card prices are really a good deal, as our investigation shows that up to a third of loyalty offers at Tesco and Sainsbury’s are not all they’re cracked up to be.”
John Lewis Shines Amid Supermarket Scandal
Meanwhile, John Lewis Partnership bucks the trend with improved performance. Losses before tax and exceptional costs fell by 14%, liquidity stands strong at £1.3bn, and customer numbers are rising.
But inflation bites, pushing their Partnership Plan timeline back by two years, now set for 2027/28, focusing on efficiency and productivity.
Waitrose, part of John Lewis, saw sales jump 4% to £3.7bn thanks to price cuts and new partnerships. John Lewis reported mixed results — strong sales in beauty and fashion but cautious spending on big-ticket home and tech items.
