Loyalty Schemes: Genuine Savings Revealed by UK Regulator

The UK's Competition and Markets Authority has confirmed that loyalty schemes offered by major supermarkets like Tesco and Sainsbury's provide genuine savings. The review analyzed around 50,000 products and found shoppers save 17% to 25% on average. However, it's advised to compare prices for better deals.

British supermarkets' loyalty schemes, including Tesco's "Clubcard Prices" and Sainsbury's "Nectar Prices," genuinely offer significant discounts, confirmed the Competition and Markets Authority (CMA) on Wednesday.

The CMA's review of around 50,000 products found minimal evidence of misleading promotions. Instead, shoppers can enjoy average savings ranging from 17% to 25% at supermarkets like Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons.

George Lusty, CMA's interim executive director of consumer protection, acknowledged the widespread skepticism around loyalty card prices, but the review provided reassurance on their authenticity. Nevertheless, the CMA advises comparing prices as loyalty schemes aren't always the cheapest.

(With inputs from agencies.)