17.7 C
Thursday, September 28, 2023
HomeEconomySainsbury's and Tesco use 'potentially dodgy tactics' on loyalty card prices, Which?...

Sainsbury’s and Tesco use ‘potentially dodgy tactics’ on loyalty card prices, Which? claims


Tesco and Sainsbury’s are using “potentially dubious tactics” in some of their loyalty offers to shoppers, consumer group Which? has stated.

According to Which?, in some cases supermarkets give the impression that the savings for loyalty cardholders are better or more substantial than they actually are.

Its findings suggest that Tesco and Sainsbury’s “sometimes offer their customers deals that do not necessarily constitute genuine savings.”

Sainsbury’s refuted the claims, saying: Which one? The conclusions were based on “flawed methodology.”

Tesco also rejected Which?’s findings. and told This is Money that “all of our Clubcard price promotions follow strict rules.”

Claims: Tesco and Sainsbury’s are using “potentially dubious tactics” in some of their shopper loyalty offers, consumer group Which? claims

Which? He also stated that not all customers can sign up for supermarket loyalty programs, particularly those who do not have access to a computer, those who are too young or those in temporary accommodation.

The consumer group analyzed the prices of 141 Tesco Clubcard and Sainsbury’s Nectar card products and tracked the prices of these products over a six-month period.

It claimed that only 29 percent of products included in members-only promotions were listed at their so-called “regular price.”

Through his research, Which? He said he identified three main issues centered on the “regular” prices quoted on certain loyalty deals at Sainsbury’s and Tesco.

This included regular prices that had changed shortly before the customer promotion, regular prices that were much higher than in other supermarkets, and regular prices that were only available for a very short period of time.

Which?  He used different examples to detail his findings.

Which? He used different examples to detail his findings.

According to Which?, Sainsbury’s advertised a jar of Nescafé Gold Blend instant coffee (200g) for £6 with a Nectar card, a saving of £2.10 on the ‘regular’ price of £8.10. But the regular price had also been £6 at Sainsbury’s until it rose to £8.10 just two days before the Nectar price was launched.

Which? He also discovered that Sainsbury’s “regular” price was considerably higher than other supermarkets.

At Asda, for example, the same jar cost £7, while at Morrisons, Ocado and Waitrose it was £6. Tesco charged £5.99 at Tesco and £5.49 at Lidl, the consumer group claimed.

In Tesco, which one? I found Heinz Salad Cream (605g) with a Clubcard price of £3.50 and a ‘regular’ price of £3.90. However, its usual price had been £2.99 for several weeks before increasing to £3.90, 22 days before the Clubcard promotion, Which? saying. It had been at its “normal” price for only 25 days out of 183, which is about 14 percent of the previous six months.

Of the members-only prices, one shopper told Which?: “I agree these attract customers like me, but I feel like they jack up the prices anyway and then the members prices become the normal price that should be”.

Which? has shared its conclusions with the Markets and Competition Authority. Which? He said he focused on Tesco and Sainsbury’s as they are the two largest supermarkets in the UK and have established loyalty programs.

Some ‘excluded’ buyers

Which? He also expressed concern that some shoppers were unable to access loyalty card membership programs.

He said people who do not have access to technology, are too young to apply or do not have the required criteria for a directorship risk being excluded.

Vulnerable groups, such as young parents and carers or those in temporary housing, could lose access to the loyalty offer, it added.

Answer: Tesco refuted the claims and said all its promotions adhere to strict rules.

Answer: Tesco refuted the claims and said all its promotions adhere to strict rules.

Answer: Sainsbury's refuted Which?'s claims?  in his latest findings

Answer: Sainsbury’s refuted Which?’s claims? in his latest findings

You must be 18 or over to be a member of Asda, Iceland, Lidl, M&S, Sainsbury’s, Tesco and Waitrose loyalty schemes, and 16 or over at Morrisons.

What is members-only pricing?

An increasing number of supermarkets and stores offer members-only or loyalty pricing.

For certain products, the retailer offers one price for loyalty card members and a different, higher price for non-members.

“With high food inflation continuing to put pressure on household finances, loyalty programs are an effective way for supermarkets to compete with the consistently low prices of discounters Aldi and Lidl,” said Joe Dawson , retail analyst at GlobalData.

Access to these promotions is limited to buyers who have joined the corresponding loyalty program. Many retailers believe that using such schemes will ensure that their member customers continue to return to their chain, rather than shopping elsewhere.

Big names such as Co-op, Superdrug and Boots have increased their use of members-only pricing in recent months. The Co-op recently announced it has invested £70 million in members-only pricing.

The Co-op is the only major supermarket currently offering an under-16s plan. Which? saying. Sainsbury’s allows under-18s to collect points using a parent or guardian’s account.

One shopper told Which?: “I don’t mind the members-only price from a selfish point of view, but I think it’s very discriminatory and morally questionable.”

Sue Davies, which one? head of food policy, said: “It’s not surprising that shoppers are questioning whether supermarket loyalty card prices are really a good deal, as our research shows that up to a third of loyalty deals at Tesco and Sainsbury’s are not as good as they seem.” be.

“As members-only pricing continues to grow, the sector, its pricing practices and who is eligible for membership must be properly scrutinized so that all buyers, including society’s most vulnerable, can benefit and no one be tricked into buying things you would buy. Typically they haven’t purchased or it’s not the deal they think it is.

‘Which? Calls on supermarkets to ensure their loyalty card prices are not misleading and for the regulator to take a closer look at this growing trend towards double pricing. There is also the important question of whether it is right for certain groups to be excluded from members-only plans.’

Sainsbury’s and Tesco respond

A Sainsbury’s spokesperson told This is Money: ‘Nectar Prices offers our customers the opportunity to make genuine savings on 5,000 products.

‘Which? It does not recognize that base prices have been increasing throughout the year due to inflation. Our promotional rules on Nectar pricing are based on Trading Standards guidance.

‘The Nescafé Gold example demonstrates Which?’s flawed methodology, as the claim that the ‘regular’ price was £6 is false.

“The base price of this item has been £8.10 since December 2022 and £6 was a promotional price throughout this year, including on Nectar Prices when it launched in April.”

A Tesco spokesperson told This is Money: “We know that having low prices on the products we sell is really important to our customers at the moment, which is why we have over 8,000 weekly deals on Clubcard Prices, offering customers Potential savings of up to £351 a year, all while racking up Clubcard points which can go towards food and fuel, or double in value with our rewards partners.

‘All of our Clubcard price promotions follow strict rules, including consideration of how they compare to market prices, to ensure they represent genuine value and savings for our Clubcard members. These rules have been endorsed by our Primary Trading Standards Authority.

‘Like what? As recently reported, Tesco was the cheapest of all the large supermarkets when using a Clubcard and was extremely competitive compared to limited range discounters.’

Some links in this article may be affiliate links. If you click on them, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

Merry C. Vega is a highly respected and accomplished news author. She began her career as a journalist, covering local news for a small-town newspaper. She quickly gained a reputation for her thorough reporting and ability to uncover the truth.

Latest stories