Loyalty Card Discounts Called Rip-Off by Which?

A recent investigation by the consumer watchdog Which? has revealed concerning pricing practices among major retailers, particularly Boots and Superdrug. The study analyzed the prices of 12,000 products over a six-month period, uncovering that many stores inflate prices just before applying loyalty card discounts, creating an illusion of significant savings. At Superdrug, 16% of products had non-loyalty prices for less than half the time, while Boots exhibited similar behavior with 10% of its products. The report also highlighted that several supermarkets, including Tesco, Sainsbury’s, and Morrisons, are engaging in similar tactics, offering discounts of 23 to 25% to loyalty card members. However, these discounts often do not reflect the best prices available, as some loyalty prices were found to be higher than non-member prices at competing stores. For instance, products at Sainsbury’s were noted to have been priced at £5 just three weeks prior to being offered at a discount. While the majority of discounts were deemed legitimate, Which? identified instances of questionable pricing practices that could mislead consumers. The Competition and Markets Authority (CMA) recently stated it was "unlikely" to find widespread evidence of misleading loyalty pricing. In response, Boots emphasized the genuine savings available to Advantage Card holders, while Sainsbury’s acknowledged that various factors, including inflation and seasonal changes, influence their pricing strategies.