UK Edition
Supermarkets have been accused of increasing prices just before offering discounts to loyal customers.
Prices at Sainsbury’s and Tesco were raised right before a loyalty card promotion, with some products being far cheaper at rivals despite them being discounted, according to findings from an investigation by Which?.
The consumer group tracked the prices of 141 member-only prices at Tesco and Sainsbury’s between December last year and June.
It alleged a third of the 71 products on offer at Sainsbury’s were the “regular” pre-discounted price less than half the time over the previous six months. At Tesco, Which? claimed it was a quarter of the 70 products.
Which? alleged the supermarkets in question are hiking prices to make it seem like loyalty card customers are getting a discount.
In one example at Sainsbury’s, a jar of Nescafé Gold Blend Instant Coffee had been discounted to £6 for members. The regular price, for all other shoppers, was £8.10.
However, Which? alleged the regular price had been £6 at Sainsbury’s until it went up to £8.10 just two days before the Nectar price launched. The consumer group also claimed the price was much higher than at other supermarkets, with Asda selling the same product for £7, and Morrisons, Ocado, and Waitrose offering it for £6.
In a Clubcard Prices example, Heinz Salad Cream had been reduced to £3.50 at Tesco. The regular price was listed as £3.90.
However, the group claimed its usual price had been £2.99 for several weeks before the supermarket increased it.
Which? shared its findings with the consumer watchdog, the Competition and Markets Authority. It added that not all customers can sign up for supermarket loyalty schemes in the first place.
The group claimed there are often age and address-based restrictions, as well as digital requirements, which mean those who are too young or do not have access to technology are not able to access discounts that would previously have been available to everyone.
A Sainsbury’s spokesman said the consumer group’s allegations were “simply inaccurate”.
He said: “Nectar prices offer our customers the opportunity to make genuine savings across 5,000 products. Which? fails 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.
“The Nescafe Gold example demonstrates Which?’s flawed methodology as the claim that the ‘regular’ price was £6 is 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.“
A Tesco spokesman said: “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. These rules have been endorsed by our Trading Standards Primary Authority.”
Despite the two supermarkets denying the allegations, Sue Davies, of Which?, said the group’s investigation suggested some loyalty schemes were “not all they’re cracked up to be”.
“It’s not surprising that shoppers are questioning whether supermarket loyalty card prices are a good deal,” she said.
Consumer expert Scott Dixon added: “The introduction of two-tier pricing appears to have opened up new opportunities for supermarkets to rip-off their customers.
“This flies in the face of claims made that supermarkets are trying to keep prices down for consumers during the cost of living crisis.”
Which? said: “Tesco and Sainsbury’s are using potentially dodgy tactics on some of their loyalty offers which can give the impression that savings are more substantial than they really are.”