Tesco and Sainsbury’s accused of deceiving customers with loyalty discounts

Supermarkets including Tesco and Sainsbury’s have been accused of using deceiving tactics to give the impression that their loyalty scheme savings are better than they really are.

According to consumer trends company Which?, supermarkets are opting for “potentially dodgy tactics on loyalty offers” to present the savings in the best light.

Which?, who tracked the pricing history of dozens of member-only offers at both retailers over six months, looked at 141 Clubcard and Nectar Price offers promoted online at the end of June.

It found that almost a third (29%) of the exclusive promotions were at ‘regular’ price for less than half that time. As such, it was 24% of the 70 products that Which? looked at in Tesco, and 34% of the 71 analysed items in Sainsbury’s.

For example:

  • Nescafe Gold Blend (200g) at Sainsbury’s – Nectar price £6, regular price £8.10. But this had only become the price just two days before the Nectar price launched – before that, it was £6. The £8.10 ‘regular’ price placed it at £1.10 more than any other supermarket.
  • Heinz Salad Cream (605g) at Tesco – Clubcard price £3.50, regular price £3.90. Its regular price had been £2.99 at Tesco for several weeks before it was increased to £3.90 just 22 days before the Clubcard promotion. It had only been at its ‘regular price’ for 14% of the previous six months.

Which? is now calling on both retailers to make sure every non-member price is genuinely reflected so that savings are meaningful.


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Solent University lecturer and data specialist Garfield Benjamin said: “The change towards member-only pricing really means people are likely to feel they have less choice about signing up.”

Sainsbury’s said, that due to inflation, many products had increased in price over the past six months while Sainsbury’s own inflation rate had been behind many of its competitors.

It told Which?: “We make every effort to be transparent about how customer data is used at Nectar. Customers can find more information on this in the privacy policy on our website.”

The news comes as Sainsbury’s is extending its Nectar Prices scheme for a limited time to cut the price of 150 Heinz branded products.

FinanceNewsSupermarkets

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