Sainsbury’s and Tesco are using ‘potentially dodgy tactics’ over nectar and club card prices. Which? claims

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

The supermarkets in some cases give the impression that the savings for loyalty card holders are better or more substantial than they actually are, according to Which?

The findings suggest that Tesco and Sainsbury’s ‘sometimes offer customers deals that do not necessarily represent real savings’.

Sainsbury’s has refuted the claims, saying: Which one? findings were based on ‘flawed methodology’.

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

Which? also claimed that not all customers can sign up for the supermarkets’ loyalty programs, especially not all customers without access to a computer, those who are too young or those staying in temporary housing.

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

It claimed that only 29 percent of products included in exclusive member promotions were listed at the so-called ‘regular price’.

Through her research, Which? said it identified three key issues centering on the ‘normal’ prices quoted in certain loyalty offers at Sainsbury’s and Tesco.

This includes regular prices that were changed shortly before the customer promotion, regular prices that were much higher than at other supermarkets and regular prices that were only available for a very short time.

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

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

For example, at Asda the same pot cost £7, while at Morrisons, Ocado and Waitrose it was £6. Tesco charged £5.99 to Tesco and £5.49 to Lidl, the consumer group claimed.

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

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

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

Some shoppers ‘excluded’

Which? also raised concerns that some customers would not be able to access loyalty card membership programs.

It says people who do not have access to technology, are too young to apply or do not have the required criteria for an address are at risk of being excluded.

Vulnerable groups, such as young parents and carers or people in temporary accommodation, could miss out on access to the loyalty offer, it added.

You must be 18 or over to be a member of the 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 to currently offer a scheme for under-16s. Which? said. Sainsbury’s allows under 18s to collect points through a parent or guardian’s account.

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

Sue Davies, which one? Head of Food Policy said: ‘It’s not surprising that consumers are wondering whether loyalty card prices in supermarkets are really a good deal, as our research shows that up to a third of loyalty offers at Tesco and Sainsbury’s aren’t the only thing they’re looking for. doing. are.

‘As members-only prices continue to grow, the sector, pricing practices and who qualifies for membership need to be closely scrutinized so that all consumers – including the most vulnerable in society – can benefit and no one is misled into buy things he would like to buy” that they usually haven’t bought or that isn’t quite the deal they think it is.

‘Which? is calling on supermarkets to ensure that the prices on their loyalty cards are not misleading and that the regulator takes a closer look at this growing trend towards double pricing. There is also the important question of whether it is right that certain groups are excluded from membership schemes.’

Sainsbury’s and Tesco respond

A spokesperson for Sainsbury’s told This is Money: ‘Nectar prices offer our customers the opportunity to make real savings on 5,000 products.

‘Which? does not recognize that basic prices have increased throughout the year due to inflation. Our promotional rules around nectar prices are based on Trading Standards guidelines.

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

‘The base price of this item has been £8.10 since December 2022 and £6 has been a promotional price throughout the year, including for Nectar Price 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 at the moment. That’s why we have over 8,000 offers on Clubcard prizes every week, giving customers potential savings of up to £351 a year – all while collecting Clubcard points that you can use on groceries and fuel, or double in value at our Reward Partners.

‘All our Clubcard price promotions follow strict rules, including taking into account how they compare to market prices, to ensure they represent real value and savings for our Clubcard members. These rules have been approved by our Primary Trading Standards Authority.

‘As which? Tesco recently reported that Tesco was the cheapest of all the major supermarkets when using a Clubcard – and was extremely competitive compared to the discounters with a limited range.”