Do supermarket loyalty cards really save your money? Here's what the UK watchdog found

Promising discounts and exclusive offers to members, supermarket loyalty cards have become a part of daily life when grocery shopping. But do they genuinely help consumers save money, or are they just another marketing gimmick?

The UK’s Competition and Markets Authority (CMA) has weighed in with an extensive review. The CMA’s investigation, which analysed nearly 50,000 grocery products on loyalty price promotions, found that the vast majority (92%) offered genuine savings compared to the usual price.

"We found very limited evidence of price changes which could indicate that supermarkets may have inflated prices to make their loyalty prices appear misleadingly attractive,” the watchdog said.

This means that for most shoppers, loyalty discounts are exactly what they claim to be: an opportunity to save on shopping.

While the findings are encouraging, they’re not without caveats. The watchdog found instances where loyalty prices weren’t necessarily the best deal. Out of 429 specific loyalty-priced products studied in detail, 61 were cheaper at rival supermarkets. A key takeaway: loyalty cards can help save money, but they don’t eliminate the need to shop around.

The CMA’s consumer survey also revealed a mixed bag of opinions about loyalty pricing. While 97% of people reported being members of at least one loyalty scheme, not everyone is convinced they’re fair. Around 43% of respondents felt it was unjust for non-members to miss out on lower prices. Additionally, 40% of shoppers admitted they don’t completely trust that loyalty discounts reflect genuine savings.

How much are you really saving?

According to the CMA, loyalty-priced products were, on average, 17% to 25% cheaper than their usual prices across five major supermarket chains. However, a common perception among shoppers is that non-members pay higher-than-usual prices during loyalty promotions.

Despite this scepticism, the CMA’s analysis provided little evidence to support claims of inflated prices. Most non-members pay the same price for products during loyalty promotions as they would in the weeks before or after the deals.

Supermarkets were also advised to carefully review their practices and ensure they comply with consumer protection laws, particularly when alternating between loyalty discounts and other promotions.

“We are also calling on supermarkets to consider if they could do more to make sure that certain shoppers – such as those without smartphones and under-18s – are able to join and make use of loyalty schemes,” the CMA said.

The report also dispelled concerns that loyalty schemes exploit personal data, with only 7% of non-members citing data privacy as their reason for opting out.