Real savings to be had with supermarket loyalty schemes

It’s official: supermarket loyalty cards really can save you a pretty packet on your weekly shop.

After looking at how much 50,000 products at Tesco, Sainsbury’s, Morrisons, Co-op and Waitrose cost, the Competition and Markets Authority (CMA) found 90% of loyalty card prices offer serious savings compared to the non-member price.

Two-tier pricing

Loyalty pricing is a two-tier price system – non-members pay more than a cardholder for the same item. For example, an item selling for £2 could cost just £1 if you have a loyalty card.

Having a supermarket loyalty card can save you between 17% and 25% on your shopping, on average.

Despite the deals, the watchdog said loyalty prices weren’t always the cheapest option, so shopping around is still best.

CMA also found that although 70% of shoppers believe you can save a decent amount with a loyalty card, 40% said they didn’t think they were ‘real’ savings.

Most (70%) 18-29-year-olds said they thought non-member prices had been bumped up when a loyalty discount was offered.

What about other supermarkets?

Although most supermarkets now have some type of rewards scheme, they don’t all give you cheaper prices.

Asda, for example, doesn’t offer two-tier pricing for loyalty card holders, though you can earn points and swap them for vouchers.

Aldi and Lidl (which does have a loyalty scheme) weren’t included in the report because:

• They don’t sell online.
• The CMA says they don’t stock enough branded items to compare like-for-like.

Why do supermarkets have loyalty schemes?

Supermarkets use loyalty schemes to reward customers and collect information about shopping habits, like how often you buy certain items.

This helps them create better marketing strategies. Some even sell the info about your shopping habits to suppliers for targeted advertising.

Although some people are concerned about privacy – the CMA says 7% avoid loyalty schemes because of these worries.

How else can I save money on my supermarket shop?

It seems most shoppers don't mind sharing their data for better prices.

If you’re not fussed and you don’t have any supermarket loyalty cards, it might be worth picking one up for free next time you go.

Not convinced? Take some time out of your day to put together an online shop (you don’t need to buy it) to see how both prices compare. You may be surprised at how much you can save.

Enjoy the best of both worlds by shopping around and making the most of any loyalty cards you have – something you want at Tesco might not be on a member’s price right now, but it might be at Sainsbury’s. Or the non-member price at Morrison’s could be the cheapest option.

If you don’t want – or can’t get – a loyalty card, price comparison sites like Trolley could help you rack up the savings.

You can also try switching supermarket or check out these other ways to slash the price of your weekly shop.