Regulator delivers verdict on supermarket loyalty prices

Business

Supermarket loyalty schemes offer genuine savings for shoppers, according to the competition regulator following an investigation into claims of price manipulation.

The Competition and Markets Authority (CMA) said its review of 50,000 loyalty priced products showed that 92% offered genuine savings against the usual price.

That was despite 55% of shoppers thinking ‘usual’ prices were raised to make loyalty deals more appealing, it said.

Money latest: UK pension scheme slammed over Bitcoin investment

The watchdog’s report found “very little evidence” of supermarkets inflating their ‘usual’ prices to make loyalty promotions seem like a better deal.

It was asked to investigate by the consumer group Which?.

Which? had complained that deals were “not all they were cracked up to be” but chains declared that the group’s own report on the issue had failed to take the effects of inflation into account.

More from Money

The CMA’s report was published at a time of year when supermarket chains tend to scrap for market share by offering discounts to lock in customers for their Christmas grocery shopping.

There is a chance, however, that stretched consumer budgets will benefit to only a limited extent this year as the retail sector faces pressure to save money and protect profits through looming leaps in costs arising from the budget.

Please use Chrome browser for a more accessible video player

Inflation rises beyond forecast

Major employers, such as grocers, have warned that hikes to employer National Insurance contributions from April will hurt jobs and investment while the rate of inflation has risen again above the Bank of England’s target.

Retail industry body the BRC warned earlier this week that food inflation could soon be on the rise due to rising costs, with the pace of increases for fresh produce already accelerating.

George Lusty, interim executive director of consumer protection at the CMA, said of its price probe: “We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly.

“After analysing tens of thousands of products, we found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.

Read more from Sky News:
Vauxhall’s owner to shut Luton plant
Historic meat market to close after 800 years

“While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key. By checking a few shops, you can continue to stretch your hard-earned cash.”

The regulator said that while loyalty prices were generally some of the cheapest available, people could make an average saving of 17-25% buying loyalty priced products at the 5 supermarkets examined: Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons.

As part of its review, the CMA said it also found no evidence that consumer laws were being breached by the way supermarkets collect and use people’s data when they sign up to a loyalty scheme.

Products You May Like

Articles You May Like

Climate-vulnerable islands storm out of COP29 negotiation room in row over funding
Nurmagomedov to defend Bellator title in Dubai
Kanye West accused of sexual assault on set of music video in new lawsuit
4,000-Year-Old Maya Fish-Trapping Network Found in Belize Supported Early Communities
Two Britons believed to be among 16 missing as tourist boat sinks after being ‘hit by large wave’

Leave a Reply

Your email address will not be published. Required fields are marked *