Supermarket loyalty schemes: Which are the best?

With the rising cost of groceries hitting a 14-year high of 13.1 percent, households are desperate for ways to lower their bills.

The Bank of England’s rate hike to 2.25 percent last week will put further strain on household accounts by pushing up mortgage and loan payments.

For millions of households, discounts on food through loyalty programs are turning from a nice-to-have to a necessity.

But compensation plans vary wildly in generosity and change regularly. Sainsbury’s, for example, will cut loyalty rewards for 1.8 million of its credit card holders from November. Here we compare the best loyalty programs and reveal the best strategies to maximize the savings.

Tesco Club Card

Tesco’s Clubcard loyalty program is one of the simplest. It earns one point for every £1 spent in the supermarket and on its website. You also get one point for every £2 you spend on fuel at the petrol pumps. Every 100 points collected is converted into a £1 discount coupon.

However, the supermarket’s exclusive Clubcard discounts may be less helpful if you’re really trying to lower your bills. This is because the deals, which are constantly changing, are usually on big brand names. Even when the discounts are taken into account, the own brand alternatives are often cheaper.

Current offers include ten Birds Eye fish fingers reduced from £2.50 to £1.75 and Kellogg’s Cornflakes reduced from £2.85 to £2.50. Tesco’s own-brand fish fingers and cornflakes cost £1.50 and 90p respectively.

You can increase the value of your points by spending them with so-called ‘reward partners’ – including Pizza Express, Zizzi, RAC and Virgin Atlantic. For example, at Pizza Express, a 50p Tesco voucher is worth £1.50.

Sainsbury’s nectar

Customers receive one Nectar Point for every £1 spent at Sainsbury’s or Argos. Two points are worth a cent on your grocery shopping – so spend £100 and you’ll get 50 cents off your next bill. Spending on a Sainsbury’s credit card earns you even more Nectar Points. But only from November 1st, the number of points you earn will drop from two points for every £1 spent to one point for every £2 spent.

To get the most out of Nectar offers, you can spend points with partners who are also signed up to the program. These include coffee chain Caffè Nero – where 350 points can get you a free latte – eBay, Esso and British Airways.

Asda Rewards

Customers who use Asda Rewards do not earn points, but build up a ‘checkout’ that can be spent in the supermarket.

You have to download an app on your smartphone and then scan it when paying for your groceries. But money for the cash pot can only be built up from about 400 so-called ‘star products’.

These include supplies such as fruits and vegetables to school uniforms – with the star clearly marked in the store.

Usually, one-tenth of the amount spent on star products is transferred to your cash pot. You can save more on occasional special offers, such as a back-to-school deal where customers can deposit £5 into the cash pot when they spend £25 on George branded clothing.

My Morrisons

This scheme offers members special offers, rather than points for spending. Customers must download an app or sign up for a physical discount card to receive offers. Recent products include 15 percent off salads or £6 off if you spend £60 in the supermarket. You scan your phone or card at checkout to take advantage of the deals available. Al Baker, who provides money-saving tips on the website The Penny Pincher, says: “Offers are few, but because every penny counts, it’s still worth considering.”

While the loyalty program is relatively simple, Morrisons says it tailors discounts to your spending habits, so you’ll find it increasingly useful.

MyWaitrose

Customers who sign up for the myWaitrose loyalty program will receive a selection of vouchers offering savings on select groceries – either through their phone app or sent by mail.

Discounts are focused on what you normally buy. The offers are limited but can be generous if you have a predictable spending schedule. You can get a 20 percent discount on select cheese, fish or meat counters on certain days of the week. Members also get a five percent discount on dry cleaning at Johnsons the Cleaners. Waitrose is also working with insurer Vitality to offer 25 percent cash back on foods with a ‘good health’ logo.

M&S Sparks

THIS loyalty program is offered as a smartphone app. Members receive special offers such as £2 off when spending £15 on flowers and plants or 30 cents off a cup of coffee in the M&S cafe. Members also occasionally receive customized offers, such as a free pack of candy with their groceries. Deals are claimed at checkout by scanning your phone.

If you don’t shop at M&S ​​for a while, you can get special offers to lure you back.

Lidl Plus

A smartphone loyalty app from this discount supermarket gives customers a ten percent discount on their next store up to a maximum of £20 if they spend at least £250 in the store during a month. It’s a simple option, but will most likely benefit from frequent shoppers at Lidl.

Cashback offers

Websites that offer cashback are also worth considering to further reduce grocery costs. These include JamDoughnut, a website where you can occasionally find discount codes that can be used for your grocery shopping.

Recent special offers include three percent off a Sainsbury’s store when you spend between £20 and £50 and four percent off an Asda supermarket that costs up to £200. Other cashback websites include Shopmium and CheckoutSmart. Don’t forget to claim discounts before they expire.