UK Supermarket Loyalty Schemes: A Genuine Bargain?

The UK's Competition and Markets Authority confirmed that supermarket loyalty schemes provide genuine savings. An investigation into Tesco's 'Clubcard Prices' and Sainsbury's 'Nectar Prices' showed average savings of 17%-25%. Customers were advised to shop around, as loyalty prices aren't always the cheapest.

British supermarket prices offered through loyalty schemes have been validated as genuine savings by the competition regulator, a verdict that's great news for big players like Tesco and Sainsbury's, who increasingly depend on these schemes to draw consumers.

Loyalty programs such as 'Clubcard Prices' and 'Nectar Prices' have been instrumental for supermarkets. The Competition and Markets Authority (CMA)'s review showed these schemes cover a wide array of products, with most offering a real discount rather than misleading customers.

The CMA found that these promotions resulted in savings averaging 17% to 25% on products. While consumers are advised to compare prices, the review's positive outcome was welcome news for retailers, as confirmed by the shares of Tesco and Sainsbury's experiencing slight increases.

(With inputs from agencies.)