Tesco and Sainsbury’s are using ‘potentially dodgy tactics’ on some of their loyalty offers to shoppers, consumer group Which? has claimed.

The supermarkets are, in some instances, giving the impression that savings for loyalty card members are better or more substantial than they really are, according to Which?

Its findings suggest Tesco and Sainsbury’s ‘are sometimes offering customers deals that do not necessarily constitute a genuine saving’.

Sainsbury’s has refuted the claims and said the Which? findings were based on a ‘flawed methodology’.

Tesco also rejected the findings by Which? and told This is Money that ‘all our Clubcard Price promotions follow strict rules’.

Which? also claimed that not all customers are able to sign up to the supermarkets’ loyalty schemes, particularly those without access to a computer, people who are too young or those in temporary accommodation.

The consumer group analysed 141 Tesco Clubcard and Sainsbury’s Nectar card product prices and tracked the pricing of these products over a six month period. 

It claimed that only 29 per cent of products included in member-only promotions were listed at their so-called ‘regular price’.

Through its research, Which? said it identified three main problems centred on ‘regular’ prices quoted in certain loyalty offers at Sainsbury’s and Tesco. 

This included regular prices that had been changed soon before the customer promotion, regular prices that were far higher than at other supermarkets and regular prices that were only available for a very short period of time. 

According to Which?, Sainsbury’s advertised a jar of Nescafé Gold Blend Instant Coffee (200g) for £6 with a Nectar card, a saving of £2.10 on the ‘regular’ price of £8.10. But the regular price had also been £6 at Sainsbury’s until it went up to £8.10 just two days before the Nectar price launched. 

Which? also found the ‘regular’ Sainsbury’s price was considerably higher than at other supermarkets. 

At Asda, for example, the same jar was £7, while at Morrisons, Ocado and Waitrose it was £6. Tesco charged £5.99 at Tesco and £5.49 was charged at Lidl, the consumer group claimed.

At Tesco, Which? found Heinz Salad Cream (605g) with a Clubcard price of £3.50 and a ‘regular’ price of £3.90. However, its regular price had been £2.99 for several weeks before it was increased to £3.90, 22 days before the Clubcard promotion, Which? said. It had been at its ‘regular’ price for only 25 days out of 183, equating to around 14 per cent of the previous six months. 

On member-only pricing, one shopper told Which?: ‘I agree that these attract customers like me, but feel like they raise the prices anyway and then members’ prices become the normal price it should be.’ 

Which? has shared its findings with the Competition and Markets Authority. Which? said it focused on Tesco and Sainsbury’s as they are the UK’s two biggest supermarkets and have established loyalty schemes. 

Some shoppers ‘excluded’

Which? also raised concerns about some shoppers being unable to access loyalty card membership schemes. 

It said people who don’t have access to technology, are too young to apply or don’t have the required criteria for an address are at risk of being excluded. 

Vulnerable groups, like young parents and carers or those in temporary housing, might miss out on access to the loyalty offering, it added. 

You have to be 18 or over to be a member of Asda, Iceland, Lidl, M&S, Sainsbury’s, Tesco, and Waitrose loyalty schemes, and 16 or over at Morrisons. 

Co-op is the only major supermarket currently offering a scheme for under-16s, Which? said. Sainsbury’s does let under-18s collect points using a parent or guardian’s account. 

One shopper told Which?: ‘I don’t mind member-only pricing from a selfish point of view, but think it’s very discriminatory and morally questionable.’

Sue Davies, Which? head of food policy, said: ‘It’s not surprising that shoppers are questioning whether supermarket loyalty card prices are really a good deal, as our investigation shows that up to a third of loyalty offers at Tesco and Sainsbury’s are not all they’re cracked up to be.

‘As member-only pricing continues to grow, the sector, its pricing practices and who is eligible for membership needs to be properly scrutinised so that all shoppers – including society’s most vulnerable – can benefit and no one is misled into buying things they wouldn’t have usually bought or which isn’t quite the deal they believe it to be.

‘Which? is calling on supermarkets to make sure that their loyalty card prices don’t mislead and for the regulator to look more closely at this growing trend towards dual pricing. There is also the important issue of whether it is right for certain groups to be excluded from member-only schemes.’

Sainsbury’s and Tesco respond 

A Sainsbury’s spokesperson told This is Money: ‘Nectar Prices offer our customers the opportunity to make genuine savings across 5,000 products. 

‘Which? fails to recognise that base prices have been increasing throughout the year due to inflation. Our promotional rules around Nectar Prices are informed by the guidance from Trading Standards.

‘The Nescafe Gold example demonstrates Which?’s flawed methodology as the claim that the ‘regular’ price was £6 is untrue. 

‘The base price of this item has been £8.10 since December 2022 and £6 was a promotional price throughout this year, including on Nectar Prices when it launched in April.’

A Tesco spokesperson told This is Money: ‘We know that having low prices on the products we sell is really important to our customers right now, which is why we have more than 8,000 weekly deals on Clubcard Prices, offering customers potential savings of up to £351 a year – all while collecting Clubcard points that can be put towards groceries and fuel, or doubled in value with our Reward Partners.

‘All our Clubcard Price promotions follow strict rules, including considering how they compare against prices in the market, to ensure they represent genuine value and savings for our Clubcard members. These rules have been endorsed by our Trading Standards Primary Authority.

‘As Which? reported recently, Tesco was the cheapest of all the major supermarkets when a Clubcard was used – and was extremely competitive when compared with the limited range discounters.’