The grocery landscape has long been shaped by loyalty schemes, with supermarkets offering enticing discounts to card-carrying members. But are these deals genuinely beneficial or merely a clever marketing ploy?
The Competition and Markets Authority (CMA) has finally addressed this debate, revealing that loyalty prices overwhelmingly deliver genuine savings. Yet, as the CMA points out, there are still nuances that shoppers—and retail professionals—should consider.
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The CMA recently conducted an in-depth review of over 50,000 loyalty-priced products from major UK supermarkets like Tesco, Sainsbury’s, Waitrose, and Morrisons.
The results are promising: 92% of these products offered real savings when compared to their usual prices.
George Lusty, the CMA’s Interim Executive Director of Consumer Protection, acknowledged public scepticism but reassured shoppers, stating, “Almost all the loyalty prices reviewed offered genuine savings—a fact we hope reassures shoppers throughout the UK.”
For consumers, these findings validate the value of loyalty schemes. With average savings of 17–25%, these promotions can help ease financial pressures, especially as households navigate the rising cost of living.
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By GlobalDataShopping smarter with loyalty deals
Despite their benefits, loyalty prices aren’t always the cheapest option. While the CMA found loyalty deals to be largely legitimate, they encourage shoppers to remain vigilant.
The investigation revealed that prices at competitors like Aldi and Lidl, which don’t heavily rely on loyalty schemes, can sometimes be lower. Shopping around remains crucial for those looking to maximise their savings.
For retail professionals, this highlights an opportunity to differentiate offerings.
Loyalty pricing is not just about discounting—it’s about building trust. Customers need to feel confident that their loyalty is rewarded fairly and transparently.
As the CMA noted, while loyalty prices are attractive, encouraging shoppers to explore other avenues of value—like bundle deals or everyday low pricing—could enhance customer retention.
The fairness factor and accessibility challenges
One area of concern raised by the CMA is fairness. While most shoppers appreciate loyalty schemes, 43% feel it’s unfair that members enjoy lower prices compared to non-members.
For some, these programmes can even seem exclusionary. Barriers like smartphone reliance and age restrictions prevent certain groups, particularly older customers or those less tech-savvy, from accessing these benefits.
The CMA recommends that supermarkets adopt more inclusive measures, such as in-store sign-ups or lowering age limits for loyalty programmes. By making these schemes more accessible, supermarkets can ensure that every shopper, regardless of their circumstances, can benefit from these savings.
Moreover, transparency around data usage remains essential. Although concerns about data privacy deterred only 7% of survey respondents from joining a loyalty scheme, supermarkets must maintain clear communication about how customer data is collected and used.
This transparency builds trust and strengthens brand loyalty.
The takeaway
For retail professionals, the CMA’s findings serve as both a reassurance and a call to action. Loyalty schemes are effective, but they must be equitable and transparent to maintain customer trust.
By addressing barriers to access and ensuring promotions remain competitive, supermarkets can strengthen their relationships with shoppers while offering tangible financial benefits.
In a competitive grocery market, where every penny counts, loyalty pricing is a powerful tool—when used thoughtfully and fairly.
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