Tesco Club Card versus Sainsbury’s Nectar: Which will save you the most money?

Grocery stores are engaged in a fierce battle to enroll customers in their loyalty programs by offering discounts on groceries that are only available to program members.

Tesco led the way with its Clubcard pricing, which offers the 21 million members of its Clubcard loyalty program discounts on more than 8,000 products.

But last month rival Sainsbury’s joined the fray by launching Nectar Price.

This membership program offers 18 million Nectar customers discounts of up to 50 percent on more than 450 supermarket essentials, such as dish soap, cereal and tea bags.

And the Co-op, Waitrose and Morrisons have also all announced plans to launch loyalty card discounts in the past two weeks.

Savvy shoppers who take advantage of these deals can save hundreds of dollars on their groceries.

For example, Tesco claims its Clubcard members can save up to £351 a year.

The offers couldn’t come at a better time as the cost of a weekly shop is rising at its fastest pace in 45 years. Food is 19.2 percent more expensive than a year ago, according to the Office for National Statistics.

But using a loyalty program doesn’t guarantee you’ll get the cheapest deals. Ele Clark, retail editor at Which?, says: ‘Competition between supermarkets for loyalty card systems is fierce.

“These cards can be a great way for people to save money at stores they already use.

“However, these savings can easily be negated if the store’s prices are higher than its competitors, so it’s vital that customers can discover if they’re getting their money’s worth.”

Clive Black, a retail analyst at Shore Capital, says supermarkets are expanding their offerings to members to encourage loyalty and collect data on spending patterns.

‘Supermarkets are struggling to retain customers by offering the best possible price. Membership programs also allow supermarkets to track customer spending and target customers with specific products, which will boost sales.”

Major supermarket loyalty programs are free and you can sign up online or in-store.

Sainsbury’s vs Tesco

Money Mail pitted the top two loyalty discounts from Tesco and Sainsbury’s.

We compared the prices in the two supermarkets on a typical basket of goods from the retail research company Assosia. The 14 main items, such as cheddar cheese, eggs and pasta, were identified by Assosia as items offered in an average weekly family store.

We found that Tesco was cheaper than Sainsbury’s for a customer who hadn’t signed up for either loyalty programme.

It cost £43.87 for a basket, compared to £46.89 at Sainsbury’s.

Challenger: Last month, Sainsbury’s launched Nectar Prices – giving 18 million Nectar customers discounts of up to 50% on more than 450 supermarket essentials

However, if the customer signed up for the loyalty programs to take advantage of the Nectar and Clubcard prices, Sainsbury’s was slightly cheaper, £37.24 versus £37.39 at Tesco.

Nectar Price cut £9.65 off the shopping bill, while Clubcard prices cut the bill by £6.48.

One of the biggest savings was £1.05 off 80 Yorkshire teabags when bought with Nectar prices, bringing the price down to £2.25.

The same teabags were £3.30 when bought from Tesco and at the time of our price snapshot on 1 May they were not available at a Clubcard price.

Loyd Grossman pasta sauce with tomatoes and basil was also cheaper at Sainsbury’s, with a jar costing £1.50 with Nectar Prices and £1.75 with a Tesco Clubcard.

The costs for non-members are € 3 at both supermarkets. At Tesco, 650 grams of chicken breast cost £5.40 but was £4.75 with Clubcard prices. At Sainsbury’s 640g fillets cost £4.95 because there was no discount on Nectar prices.

While Sainsbury’s was generally cheaper in this snapshot example, that won’t always be the case. Both supermarkets change their offers regularly and the savings available will inevitably depend on what you buy.

And Sainsbury’s currently only offers discounts on about 450 products, while Tesco offers discounts on more than 8,000 items.

Nectar customers receive other benefits in addition to Nectar prices, including personalized discounts on items they regularly purchase.

Top scheme: Tesco’s Clubcard Prices scheme offers the 21 million members of its Clubcard loyalty program discounts on more than 8,000 products

They also earn points for groceries and fuel purchased, which can be spent at Sainsbury’s or any of its 300 partners, including British Airways, Argos and Very.

Tesco Clubcard holders can also collect points for money spent in-store or online, which can be converted into vouchers to spend in-store or with one of its partners such as Virgin Atlantic and Café Rouge. However, the value of points decreases from June 14.

Tesco also offers Clubcard Plus, which gives customers 10 per cent off clothing at F&F twice a month and 10 per cent off at any grocery store.

The subscription costs £7.99 per month and according to Tesco membership can save shoppers up to £480 per year.

Choose from the rest

The co-op last month launched member pricing, a loyalty program that offers discounts on a range of products, including pizza, meal kits and frozen foods. The Co-op says members can save up to £300 a year.

While the selection of discounts is currently limited, it plans to invest a further £15 million into the scheme from this month.

To sign up for the program, customers can download the Co-op app, join online, or register in store. There is a £1 entry fee, but for every £1 spent you earn 2p for yourself and 2p for your local community.

You can support any of The Co-op’s 4,500 community groups

helps fund, from Aberdeen Riding for the Disabled Association to Nightingale House Hospice in Wrexham.

Food inflation: The cost of a weekly shop is rising at the fastest rate in 45 years. Food is 19.2% more expensive than a year ago, according to the Office for National Statistics

Morrisons has also relaunched its More card in 20 stores across the North East of England, with a full UK rollout planned for this summer. To get a discount, customers simply scan their card or app at checkout.

As well as discounts, customers also earn five points for every £1 they spend, as well as five points for every liter of fuel they buy at a Morrisons petrol station. For every 5,000 points earned, shoppers will receive a £5 voucher.

John Lewis and Waitrose are preparing to launch a new loyalty program in 2024. The membership program combines the My Waitrose and My John Lewis cards to offer personalized discounts and rewards to 14 million existing members.

Asda has announced no plans to introduce member pricing, despite being one of the five major supermarkets. The rewards program allows customers to collect points when they make online and in-store purchases using the Asda rewards app.

Iceland gives holders of its Bonus Card discounts on a range of items, such as frozen Icelandic private label chips and Chicken Tikka Masala and free home delivery at in-store shopping.

They also receive a £1 bonus for every £20 they save on the card – which can be done in-store or online.

Lidl offers member-only prices on a small range of items to shoppers who are signed up to Lidl Plus. Current offers include £20 off a Grillmeister 6-burner gas BBQ and 20 per cent off Deluxe Tortilla Chips.

Joining the program is free, but members must download the Lidl Plus app and activate the relevant coupons.

Aldi does not offer a loyalty program.

However, prices at Aldi and Lidl are so competitive that they can come out cheaper even after factoring in other supermarket loyalty discounts.

In March, a basket of 41 everyday items was £72.54 at Aldi, £7.73 cheaper than Sainsbury’s and £9.04 cheaper than Tesco, according to Which? figures.

a.cooke@dailymail.co.uk