The Competition and Markets Authority (CMA), which has been investigating the loyalty prices deployed by supermarkets across the UK, has found shoppers who are members of such schemes can almost always make a genuine saving.
The CMA analysed around 50,000 grocery products on a loyalty price promotion, it found very little evidence of supermarkets inflating their ‘usual’ prices to make loyalty promotions seem like a better deal.
Additionally, shoppers without a loyalty scheme membership are generally paying the same price during the loyalty price promotion as they do in the weeks both before and after loyalty price promotions.
“Our comparative price analysis indicates loyalty prices generally do offer shoppers savings when compared with the price of the same product at other supermarkets when it is not on promotion at the other retailers,” the final report stated.
The investigation, which has been on-going since January 2024, did find several loyalty priced products which were more expensive than the cheapest price available at other supermarkets at that time. With the CMA stressing that “there is value in shopping around”.
Following the publication of the final results, the CMA has written to all supermarkets that use loyalty pricing to advise them to review their practices, and where necessary to take action to ensure all of their promotions comply with consumer law. This includes when alternating between loyalty promotions and other forms of promotions such as was/now promotions.
The CMA is also calling on supermarkets to consider if they could do more to make sure that certain shoppers – such as those without smartphones and under-18s – are able to join and make use of loyalty schemes.
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