In round three of Grocery Gazette’s ‘Battle of the Grocers’ series, we ask our panel of retail and FMCG experts which supermarket is top of the league when it comes to member pricing.

Which supermarket will come out on top – Tesco, Sainsbury’s, Morrisons, Lidl or Co-op?

Tesco

The value and reach of the member pricing offer

Phil McMahon: “Tesco Clubcard is very wide reaching, with member prices on over 6,000 products. Value is subjective as shoppers have different needs, but with savings from 10p on confectionery to £55 off an electric toothbrush, there’s something for everyone.”

Danny Denhard: “Tesco is smart in how it positions value and discounts, especially with Clubcard points and generally offers good discounts across food and drink products.”

Vineta Bajaj: “Points can be converted into vouchers which can be redeemed in minutes. Clubcard Plus is a premium service which charges £7.99 per month for 10% off groceries in-store twice a month and a consistent 10% off F&F. Rounded up this is a £100 fee a year so the discount would only be worthwhile to people doing frequent high value shops.”

How easy is it to use?

Phil McMahon: “It couldn’t be easier, just remember to scan your card at the checkout. Clubcard prices are automatically applied to members when shopping online.”

Danny Denhard: “Tesco has really thought about the customer and made it really easy for all age groups to use its schemes and savings. Clubcard Pay+ is a well thought through feature that goes a little unnoticed.”

Vineta Bajaj: “Voucher collection seems a little long winded and is subject to a variety of Ts and Cs. For Clubcard Plus, the twice monthly 10% off presents itself as a discount coupon within the grocery and Clubcard app. This is not very user friendly for those who don’t want to download the app.”

How omnichannel is the member pricing?

Phil McMahon: “It’s mostly omnichannel, however the Clubcard Plus scheme for 10% off two ‘big shops’ per month is only available in-store, where impulse shopping behaviours are stronger.”

Vineta Bajaj: “Voucher redemption and Clubcard Plus benefits are only available via the Tesco grocery and Clubcard app, which limits the opportunities for those less technologically savvy.”

Danny Denhard: “Tesco has thought about its customers from online to Express to superstore and its pricing reflects all experiences (apart from rapid delivery).”

What other benefits do members get?

Vineta Bajaj: “Tesco Clubcard gives members far reaching access to additional discounts with 100+ points partners ranging from fuel to fashion to energy and cars.

Phil McMahon: “In addition to lower prices, members collect points that can be converted to money-off vouchers that can be used on Tesco purchases or doubled in value when redeemed with selected Reward Partners.”

Danny Denhard: “Clubcard customers benefit most if they are subscribers to the premium ‘Plus’ scheme.”

How effectively is member prices marketed?

Phil McMahon: “It invests heavily in advertising and signage for Clubcard. Tesco has been using yellow signage and price labels in-store and online for years to signpost and these are easily identified by customers.”

Danny Denhard: “Tesco is clever in its marketing from TV to online of Clubcard and its benefits.”

Vineta Bajaj: “Tesco is a big advocate of personalised marketing and has issued 289million personalised digital Clubcard coupons to over 8million customers in the last year alone.”

Sainsbury’s

The value and reach of the member pricing offer

Danny Denhard: “Sainsbury’s is the best at understanding value and offering the deepest form of discounts and savings for Nectar card holders.”

Phil McMahon: “Second only to Tesco in terms of depth with almost 4,500 products included in the Nectar Price scheme. Savings vary from a little to a lot and there are some additional savings on offer to online and in-store SmartShop users via the Your Nectar Prices programme too.”

How easy is it to use?

Danny Denhard: “Sainsbury’s is clearly evolving its technology and has thought about how its customers can use physical Nectar cards and integrated into the app.”

Phil McMahon: “Online, it’s automatic, although the sorting tool doesn’t work properly – making it harder to find the biggest savings. In-store, it’s a little trickier as shoppers can only see personalised ‘Your Nectar Prices’ if they use SmartShop, and while it has proved popular, it’s not practical or 100% accessible for everyone.”

How omnichannel is the member pricing?

Vineta Bajaj: “Member pricing is available both in-store and online but bonus offers are only available in-app.”

Danny Denhard: “Sainsburys and Tesco are clear leaders in omnichannel and pushing member pricing across all shopping experiences.”

Phil McMahon: “The ‘Your Nectar Prices’ are only accessible in-store via SmartShop and how many people really want to have a device in their hand while handling products, baskets, trolleys, kids etc? It feels unfair not to extend the pricing to Sainsbury’s Local stores too.”

What other benefits do members get?

Vineta Bajaj: “There are over 500 big brand partners from fashion to air travel to petrol and TV. Members can also collect up to 2,000 points per night with selected hotels which converts into £20 to spend in-store or online.”

Danny Denhard: “Nectar card points are available across its brand portfolio Habitat, Argos etc and being able to spend across many well-known brands like Eurostar and high street brands such as Sky and Caffé Nero.”

Phil McMahon: “Some additional, niche reward partners could breathe new life into the Nectar card and lure shoppers away from Tesco’s Clubcard.”

How effectively is member prices marketed?

Danny Denhard: “In-store and online shopping is extremely clearly signposted and marketed well, from TV, to radio to online ads. Sainsburys app has a dedicated Nectar pricing section which is well thought through.”

Vineta Bajaj: “Nectar is a big user of digital and social media to advertise personalised offers and bonus point events. App-based deals are also promoted which encourages customers to make use of promotions directly from their smartphones.”

Phil McMahon: “Nectar’s droplet logo and distinctive purple colour scheme is well established and widely recognised in its own right, making it easy to spot across all Sainsbury’s channels.”

Morrisons

The value and reach of the member pricing offer

Phil McMahon: “There are nowhere near as many products included as the Big 2 yet, but we need to remember that the More Card was only relaunched six months ago. It’s continually improving, and feels like a priority, but does still have some way to go.”

Danny Denhard: “Morrisons discounts do not seem as far reaching as the market leaders, as Morrisons has struggled to lower prices and invest like competitors.”

How easy is it to use?

Danny Denhard: “Morrisons More is easy to use and its app is the best experience for customers.”

Phil McMahon: “It applies automatically online, and just requires the physical or digital card to be scanned at the checkouts.”

How omnichannel is the member pricing?

Phil McMahon: “It applies in-store and via Morrisons directly online, but would have been a real coup if it had been included in the recent integration of the More Card to its Amazon store.”

Vineta Bajaj: “Fivers can be redeemed both in app and in-store, however users can only activate promotions on the Morrisons More app or through their online account.”

Danny Denhard: “Morrisons is not as aggressive as its major competitors in advertising pricing and the More programme.”

What other benefits do members get?

Vineta Bajaj: “Joining the ‘More Clubs’ gives members access to additional benefits such as free online delivery and special bonuses and treats.”

Phil McMahon: “Benefits are mainly focused on personalised offers, with fewer partnerships compared to others like Nectar. Its got some Clubs that offer benefits for NHS workers, teachers, students, and parents of children under 5, which is consistent with Morrisons’ people-focused charm offensive under Rami Baitiéh. But these are more likely to contribute to customer loyalty over the long-term.”

Danny Denhard: “Morrisons has thought about the core user demos. The points scheme is easy to follow, however not as wide reaching as others are.”

How effectively is member prices marketed?

Vineta Bajaj: “Member prices and Morrisons More are clearly visible throughout stores, offering savings and special offers, and it has also made heavy use of digital and social media.”

Phil McMahon: “It’s the first option on the drop-down menu for shopping online, and is clearly signposted in stores.”

Danny Denhard: “Morrisons is effective in marketing its offers, however, as it has less products with savings it has to make “More” work harder and be clearer as a benefit to customers.”

Lidl

The value and reach of the member pricing offer

Vineta Bajaj: “Lidl Plus is an entirely digital/app based rewards programme promoting weekly offers and prizes. Unlike Tesco, Sainsbury’s and Morrisons, the loyalty rewards offered via Coupon Plus are based on what you spend each month rather than a points system.”

Phil McMahon: “Using personalised coupons rather than points makes rewards feel instant and lowers the cost of an already low-priced shop. The spend milestone rewards are popular, though, with the free bakery treat for hitting just a £10 threshold proving a real hit. Ultimately though, it’s not directly comparable to other, bigger schemes.”

Danny Denhard: “Lidl has been strategic in how it applies its discounts to the already cheaper line of food and drinks. The Plus system is clever in having clear weekly offers.”

How easy is it to use?

Vineta Bajaj: “Registration is straightforward. Unlike competitors, the offers do not need to be activated in the app beforehand in order to claim the discounts at checkout.”

Phil McMahon: “The app is really clean, simple, and intuitive. Customers can see all live offers and coupons in the app and just need to scan at the till to redeem.”

Danny Denhard: “Like other supermarkets it has followed the least friction for customers approach, the app is a good addition.”

How omnichannel is the member pricing?

Phil McMahon: “It’s in-store only and likely to remain that way unless Lidl make a major strategic move to online. The app is well maintained though, so customers can at least see current offers and what savings they can make before their visit.”

Danny Denhard: “Lidl as a discount store does not have to push and make member pricing work as hard as others, it is clear in its marketing available, however it does not need to be central to the messaging.”

What other benefits do members get?

Danny Denhard: “Lidl Plus members have a number of special deals with external retail partners from AA breakdown cover to holiday money savings.”

Phil McMahon: “The spend milestone rewards and scratchcard prizes add an element of gamification, and there are some good partner offers. Adding more partner offers that appeal specifically to Lidl’s shopper demographic could be a low cost way to continue to add more value.”

Vineta Bajaj: “As big fans of electric charging, Lidl offers Plus members the opportunity to charge their EVs at Lidl branded charging points.”

How effectively is member prices marketed?

Vineta Bajaj: “Lidl Plus still makes use of traditional media such as broadcast channels and TV. Social media is a large portion of its marketing strategy as it allows Lidl to make use of influencers and to interact directly with customers.”

Phil McMahon: “Without any ecommerce to worry about, the app is entirely focused on Lidl Plus, and there’s abundant signage in stores. You can’t not know it’s there.”

Danny Denhard: “Lidl is not as aggressive as others are and doesn’t need to be. Lidl uses subtle marketing to be as effective.”

Co-op

The value and reach of the member pricing offer

Vineta Bajaj: “There are currently 300 products within the scheme. Members receive two personalised offers each week based on spending behaviour.”

Danny Denhard: “As a Co-op member you have a number of discounts offered, typically on its own food and across its brand portfolio. As Co-op have fewer products vs the market leaders it can feel sparse.”

Phil McMahon: “Co-op member pricing is unlikely to have any significant impact on footfall at other big grocery retailers, but there are some standout value offers on ready meals and multibuys for members.”

How easy is it to use?

Vineta Bajaj: “The app is simple to use with a home section detailing member prices and a separate section showing weekly offers. Non-app users can redeem their offers by scanning their membership card at the till.”

Phil McMahon: “Really easy, just scan in-store. Online, once members are signed in the offers are applied automatically to their basket.”

Danny Denhard: “Very. Co-op has put its customers at the centre of their experience.”

How omnichannel is the member pricing?

Vineta Bajaj: “Member pricing is available in-store and online and offers can be redeemed in the app and at checkout.”

Phil McMahon: “Member pricing can feel limited as product availability is dependent on what ranges/products your local store carries.”

Danny Denhard: “Co-op has deeply thought about the member experience even including Uber Eats and its delivery service partners. This is unique as others do not currently offer this perk.”

What other benefits do members get?

Vineta Bajaj: “Members get discounts across the whole Co-op group.”

Danny Denhard: “Jump the queue access to Co-op live gigs, discounts on insurance and its funeral products.”

Phil McMahon: “Members can nominate a cause to receive a share of Co-op’s Local Community Fund, discounts on Travel Insurance, Co-op Funeral plans, and priority access to ticket sales for events at Co-op Live, but these all have limited appeal.”

How effectively is member prices marketed?

Phil McMahon: “Really well, actually. Member price labels instantly stand out online and in-store thanks to the clear and straightforward name of the membership scheme—’Member Prices’.”

Danny Denhard: “It has thought mostly about the in-store experience and online is clear enough. Co-op understands its customer demographic and treats the pricing as a real perk for a £1 membership fee.”

Vineta Bajaj: “The Co-op makes use of localised advertising which emphasises how membership benefits each community. In-store, there are banners, posters and digital screens promotion social responsibility as well as personal savings.”

And the winner is… Tesco Clubcard.