Report Highlights Concerns Over Loyalty Pricing Practices at Major Retailers

A recent report has identified Boots and Superdrug as leading offenders in the use of "rip-off" loyalty pricing strategies, which involve raising prices shortly before offering discounts to loyalty card members. An analysis of over 12,000 products revealed that 649 items at Boots had their prices increased for non-members on the same day a loyalty promotion was launched. For instance, an Oral-B iO7 electric toothbrush was priced at £400 for non-members but offered at £150 for loyalty card holders, despite being available at £71.98 just prior to the promotion. The report also highlighted similar practices at Sainsbury's, where Young's Chip Shop Omega 3 Fish Fillets were sold to members for £2.50, while non-members faced a price of £4, despite the product being priced at £3.50 for all customers just weeks earlier. This raises questions about the actual value of loyalty discounts, suggesting that they may not provide the savings they appear to offer. In response to the findings, spokespeople from Superdrug and Tesco defended their pricing strategies, asserting that their promotions are designed to provide genuine savings. Boots claimed that its loyalty scheme allows customers to save on over 8,000 products, although Which? noted that a significant portion of these discounts may not be as beneficial as advertised. Consumer advocates are calling for the UK’s competition watchdog to clarify pricing rules related to loyalty schemes and to take action against retailers that fail to comply, emphasizing the need for transparency in pricing practices.