Majority of supermarket loyalty pricing offers genuine savings, says CMA

In a review conducted by the Competition and Markets Authority (CMA) in the UK, it was found that supermarket loyalty pricing does provide legitimate discounts to consumers. The analysis covered 50,000 loyalty-priced items from major UK retailers including Tesco, Sainsbury's, Morrisons, Waitrose, and Co-op. The CMA discovered that 92% of these products offered savings when compared to usual prices. However, the findings also highlighted a notable issue: while loyalty pricing schemes may present attractive discounts, they are not always the most competitive options available to consumers, which has led to calls for shoppers to compare prices more diligently. The CMA expressed concerns about the accessibility of these loyalty schemes. Many consumers, particularly those without smartphones or under the age of 18, struggle to participate in these programs, which could limit their access to lower prices. In response to this, the CMA encouraged supermarkets to innovate their enrollment processes, suggesting offline registration methods like phone sign-ups and in-store options to broaden participation. Despite the confusion surrounding loyalty pricing, the CMA found no evidence of illegal consumer practices in how retailers manage their pricing structures. Nonetheless, there is a prevalent skepticism among shoppers: a survey revealed that over half believe regular prices are artificially inflated to enhance the appeal of loyalty pricing. This highlights a significant trust gap between supermarkets and consumers, where many feel the pricing strategies are less than transparent. The review also indicated that while loyalty pricing could influence shopping habits, many consumers remain unchanged in their grocery choices. However, a quarter of surveyed shoppers reported that they became more diligent about price comparisons because of these loyalty schemes. Consumer advocacy groups, like Which?, echoed the need for improved clarity and access regarding loyalty pricing, pushing for reforms to ensure fairness and transparency in supermarket pricing strategies.