Looking for ways to save money on your groceries, but hesitant about signing up for loyalty programs? You might be surprised to learn that Sainsbury’s Local stores could be a better option than Tesco Express for non-loyalty card holders. While Tesco is generally considered the cheaper supermarket in larger formats, according to consumer magazine Which?, Sainsbury’s Local stores offer a unique advantage.
Both Tesco Clubcard and Sainsbury’s Nectar Card offer discounts on various items, with special prices often advertised as ‘Clubcard Price’ or ‘Nectar Card Price’. However, Tesco makes these discounted items available in their local stores, like Tesco Extra, while Sainsbury’s Local stores currently do not offer Nectar Card discounts. This means that shoppers can get the same prices as Nectar Card offers in Sainsbury’s Local without having a Nectar Card.
This subtle difference in pricing strategy can lead to significant savings for shoppers who prefer not to join loyalty programs. Which? found that the average price difference without a Tesco Clubcard was 10%, but only 5% for Sainsbury’s customers without a Nectar Card. This is because Sainsbury’s Local stores essentially provide ‘Nectar Card prices’ to everyone.
The shift towards more local shopping, driven by the pandemic and a rise in remote work, has prompted supermarkets to focus on convenience stores. Professor Steve Burt, an expert in retail marketing at the University of Stirling’s Institute for Retail Studies, explains that this trend has led to higher costs for these smaller stores due to increased rent and business rates, as well as the logistical challenges of delivering smaller quantities of goods to multiple locations. So, while Sainsbury’s may not offer discounts on loyalty cards in their Local stores, it’s a smart strategy to keep prices competitive in a crowded convenience store market.
For shoppers who value convenience and affordability, Sainsbury’s Local stores present a compelling alternative to Tesco Express, especially for those who prefer to avoid loyalty programs. With its straightforward pricing and competitive prices, Sainsbury’s Local offers a valuable option for those seeking value without the need for a loyalty card.
