Recent analysis from consumer watchdog Which? has unveiled that shoppers at Tesco and Sainsbury’s who do not utilise loyalty programmes are paying more for well-known branded groceries compared to their counterparts at Waitrose. The study, conducted in February, examined the prices of 245 popular items, including brands such as Heinz, Nescafe, and Mr Kipling, revealing significant price disparities.
Price Findings Across Major Supermarkets
The research indicated that non-loyalty customers at Sainsbury’s faced the steepest costs, with an average total of £942.66 for the selected items. This price is 14% higher than the cheapest option, Asda, which totalled £823.58. Tesco’s non-Clubcard customers were not far behind, with an average price of £916.56, translating to an 11% premium over Asda’s prices.
Which? opted not to include discount retailers Aldi and Lidl in their analysis, citing a lack of sufficient branded goods in their inventory. However, when comparing the prices of branded items, Waitrose emerged as a more affordable alternative for those without loyalty cards, averaging £899.05—9% more than Asda but less than both Tesco and Sainsbury’s.
The Cost of Loyalty Schemes
While it’s true that many customers are enrolled in loyalty programmes, Which? highlighted that not everyone is willing or able to sign up. Concerns regarding data privacy and eligibility restrictions hinder some shoppers. For instance, Tesco currently prohibits customers under 18 from obtaining a Clubcard, although the supermarket has announced plans to reassess this policy by year’s end.
For those who do possess loyalty cards, the analysis showed a marked difference in prices. Tesco Clubcard holders paid an average of £837.43 for the same grocery list, only 2% more than Asda. In several cases, Tesco’s Clubcard prices were the most competitive, with items like Carex Hand Wash priced at 95p, compared to £1.70 at Waitrose.
Dramatic Price Differences for Popular Products
Which? discovered glaring price differences among popular items. For example, a 200ml bottle of L’Oreal Paris Elvive Bond Repair Shampoo cost non-Clubcard shoppers at Tesco £13—double the price for those using the loyalty card, who paid £6.50. Similarly, a jar of Kenco Smooth coffee was priced at £8.35 for customers without a loyalty card at both Tesco and Sainsbury’s, while it was £7 at Waitrose and £6.32 at Asda.
The report underscored the considerable impact loyalty schemes have on grocery pricing. It appears that branded products can sometimes be considerably cheaper at Waitrose for those not enrolled in loyalty schemes—a scenario that would have been surprising just a few years ago.
Statements from Supermarket Representatives
In response to the findings, a spokesperson for Sainsbury’s stated that the supermarket had invested over £1 billion to maintain competitive pricing. They emphasised their commitment to providing exceptional value through various initiatives, including their Aldi price match scheme and loyalty pricing.
Tesco’s spokesperson pointed out that the Clubcard is a key driver of savings for the 24 million UK households enrolled. They noted that over 80% of Tesco sales are made by Clubcard holders, reinforcing its importance in the current retail landscape.
Why it Matters
This analysis highlights the complexities of grocery shopping in the UK, particularly how loyalty schemes can skew perceptions of value. For consumers, understanding how these programmes work is essential in making informed purchasing decisions. As price competition intensifies among supermarkets, shoppers must remain vigilant, comparing prices across different stores to ensure they are getting the best deals, especially on branded items. The findings serve as a reminder that while loyalty programmes can offer savings, they can also lead to higher costs for those who opt out.
