The Competition and Markets Authority (CMA) has announced it is conducting a consumer survey into supermarket loyalty card discounts. This comes as shoppers increasingly rely on these schemes for savings, with Tesco’s Clubcard leading the way and Sainsbury’s Nectar Card and Morrisons’ More Card following suit. The CMA is assessing whether the discounts offered through loyalty schemes are genuine and not misleading shoppers.
The CMA’s analysis, involving tens of thousands of loyalty price promotions, suggests it is unlikely to find widespread evidence of misleading practices. However, they have commissioned a consumer survey to understand public perception and the impact of loyalty pricing on shopping habits and price comparisons. The results are expected to be published in November.
While a recent consumer magazine found that Tesco Clubcard and Sainsbury’s Nectar Card prices did offer savings compared to non-loyalty card users, both retailers were outperformed by Aldi and Lidl on price for comparable baskets of goods, even for shoppers using loyalty schemes. Tesco Clubcard shoppers were found to pay £144 more annually than Aldi customers, and Sainsbury’s Nectar card shoppers £168 more.
The CMA is also focusing on unit pricing, which displays the price of an item per unit of weight or volume, aiding consumers in comparing value. They have identified concerns with retailers’ unit pricing practices stemming from inconsistencies in legislation.
The CMA has recommended changes to the Price Marking Order (PMO) 2004 to enhance consistency and accuracy in unit pricing, ultimately providing shoppers with better access to price information. They encourage the government to implement these changes.
