Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) could be misleading their customers with the loyalty schemes they offer, failing to provide shoppers with the savings they believe they are getting, according to research by Which?
Calling for the Competition and Markets Authority (CMA) to investigate the issue, the consumer champion added that other customers were being excluded from discounts altogether.
Analysis of 141 Clubcard and Nectar card prices at Tesco and Sainsbury’s over a six-month period found that nearly a third of the products were priced at their supposed ‘regular’ price for less than half of the time.
Examples included Sainsbury’s advertising a jar of Nescafé Gold Blend Instant Coffee (200g) for £6 with a Nectar card, claiming a £2.10 saving from the ‘regular’ price of £8.10. However, just two days prior, the ‘regular’ price was £6.
Similar irregularities were found at Tesco with Heinz Salad Cream, which was priced for Clubcard users at £3.50, down from £3.99, when in reality weeks before the regular price was £2.99.
One shopper said: “I agree that these attract customers like me, but feel like they raise the prices anyway and then members’ prices become the normal price it should be.”
Not all customers can sign up for loyalty schemes either, with retailers limiting new members depending on whether they are the right age or live at a viable address.
Another shopper added: “I don’t mind member-only pricing from a selfish point of view but think it’s very discriminatory and morally questionable.”
Additionally, those without the technology required are not able to join the schemes, meaning some vulnerable groups may miss out on discounts or end up paying inflated prices.
Sue Davies, head of food policy at the research group added: “Which? is calling on supermarkets to make sure that their loyalty card prices don’t mislead and for the regulator to look more closely at this growing trend towards dual pricing. There is also the important issue of whether it is right for certain groups to be excluded from member-only schemes.”