Which? has alleged that Tesco and Sainsbury’s may be using “potentially dodgy tactics” around some of their loyalty offers.

The consumer champion claims the tactics being employed on the supermarkets’ loyalty schemes give the impression that savings are “more substantial than they really are”.

Which? said it has shared its findings with the Competition and Markets Authority (CMA) and asked them to look into whether supermarkets could be “hiking” their ‘regular’ prices in an attempt to make loyalty scheme customers feel as if they are getting a discount.

Which? said it analysed 141 Clubcard and Nectar card prices at Tesco and Sainsbury’s and tracked their pricing history over the previous six months.

It found that almost a third of the member-only loyalty card promotions were at their purported ‘regular’ price, less than 50 per cent of the six-month period.
Throughout its search, Which? observed that Sainsbury’s advertised a jar of Nescafé Gold Blend Instant Coffee (2O0G) for £6 with a Nectar card – a saving of £2.10 on the ‘regular’ price of £8.10. But the regular price had also been £6 at Sainsbury’s until it went up to £8.10 just two days before the Nectar price launched.

Commenting on the report, Which? head of food policy Sue Davies said: “As member-only pricing continues to grow, the sector, its pricing practices and who is eligible for membership needs to be properly scrutinised so that all shoppers – including society’s most vulnerable – can benefit and no one is misled into buying things they wouldn’t have usually bought or which isn’t quite the deal they believe it to be."

Sainsbury's has disputed the claims, telling Retail Systems that Which? used "flawed methodology" as the claim that the ‘regular’ price was £6 was untrue.

"The base price of this item has been £8.10 since December 2022 and £6 was a promotional price throughout this year, including on Nectar Prices when it launched in April," it said.

Sainsbury's added that Which? had "failed to recognise" that base prices have been increasing throughout the year due to inflation.

"Our promotional rules around Nectar Prices are informed by the guidance from Trading Standards,” Sainsbury's added.

Similar observations were made around Tesco’s pricing, with the consumer champion finding that Heinz Salad Cream (605g) with a Clubcard price of £3.50 and a ‘regular’ price of £3.90; however, its regular price had been £2.99 for several weeks before it was increased to £3.90 – just 22 days before the Clubcard promotion.

Tesco also refuted the claims made by Which?.

A spokesperson for the market-leading supermarket told Retail Systems: “All our Clubcard Price promotions follow strict rules, including considering how they compare against prices in the market, to ensure they represent genuine value and savings for our Clubcard members" and noted that the rules had been endorsed by the Trading Standards Primary Authority."

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