Supermarket Loyalty Schemes Create Dramatic Price Gaps for Branded Goods
A comprehensive investigation by consumer champion Which? has uncovered a surprising reality in the UK grocery sector. The study, which analysed average prices in February across 245 popular branded products, found that Tesco and Sainsbury's are frequently more expensive for shoppers without loyalty cards than the traditionally premium retailer Waitrose.
Methodology and Key Findings
The research meticulously monitored daily costs throughout February to establish average prices per product. It focused on household names like Heinz, Nescafé, Dove, Kellogg's, and Mr Kipling, drawing from industry data to provide a representative sample rather than a standard shopping trolley. Aldi and Lidl were excluded as they do not stock a wide range of branded items.
The results were stark: Sainsbury's emerged as the most expensive for non-Nectar card members, with a total cost of £942.66 for the branded basket. This represents a significant 14% premium over the cheapest chain, Asda, which charged £823.58 on average. Tesco followed closely, with non-Clubcard shoppers paying £916.56, 11% more than Asda.
Remarkably, Waitrose, often perceived as a pricier option, proved more competitive for those without loyalty schemes, costing £899.05 – 9% more than Asda but less than both Tesco and Sainsbury's for non-members.
Notable Price Disparities Across Products
The analysis highlighted extreme variations for specific items. For instance, Amoy Straight To Wok Noodles averaged £1.25 at Waitrose and Morrisons, but soared to £2.15 at Sainsbury's and Tesco without loyalty cards – a 72% increase. Similarly, Ryvita Thins (Sea Salt & Vinegar) were cheapest at Waitrose (£1.25) but cost £2.30 at Morrisons, Tesco, and Sainsbury's without cards, an 84% hike.
Other dramatic examples included:
- Oral-B Pro Expert Toothpaste: £2.24 at Asda vs. £3.95 at Sainsbury's and Tesco without cards (76% more).
- Sharwoods Medium Egg Noodles: £1.28 at Asda vs. £2.10 at Tesco without Clubcard (64% more).
- Filippo Berio Olive Oil (750ml): £4.98 at Asda vs. £8 at Sainsbury's without Nectar (61% pricier).
The Impact of Loyalty Schemes
The study underscores how loyalty programmes drastically alter pricing landscapes. For Tesco Clubcard holders, the same branded basket cost an average of £837.43, merely 2% above Asda. In some cases, Tesco Clubcard prices were the lowest available, such as Carex Hand Wash at 95p compared to £1.70 at Waitrose.
Coffee products exhibited particularly wide gaps. A 200g jar of Kenco Smooth cost £8.35 at Tesco and Sainsbury's without cards, but £7.00 at Waitrose and £6.32 at Asda. Nescafé Gold Blend was cheapest at Waitrose (£6.25) and most expensive at Sainsbury's without Nectar (£8.35).
For loyalty card users, Sainsbury's with Nectar was only 3% more expensive than Asda (£848.56), while Morrisons with a More card was 4% pricier (£858.67). Ocado, without a specific loyalty scheme mentioned, cost £867.17, 5% above Asda.
Expert Commentary and Recommendations
Reena Sewraz, Which? Retail Editor, commented: "Our analysis reveals a shocking truth and shows the impact loyalty schemes have had on grocery pricing. Branded favourites can actually be cheaper at Waitrose than at the UK's biggest supermarkets for shoppers who don't use a loyalty card – something that would have seemed unthinkable until a few years ago."
She advised consumers: "If you've got your heart set on specific brands, your best bet is to shop around, keep a close eye on the unit price, and stock up whenever you see a good deal – otherwise, you're likely to end up paying way over the odds. While loyalty cards definitely offer some savings, if you don't use one, you're better off heading to Asda, where the pricing is usually cheaper on a range of branded goods."
Supermarket Responses
A Morrisons spokesperson emphasised their commitment to value, noting: "Morrisons remains committed to providing good, honest value and we're working hard to keep our prices down and competitive... Our More Card members can earn Five More Points on every product and benefit from personalised offers."
Sainsbury's stated: "We have invested over £1 billion in recent years to help keep prices low... We are committed to helping customers access great quality at lower prices through our Aldi Price Match scheme, Nectar Prices, and value lines."
Ranking of Supermarkets for Branded Products
- Asda
- Tesco with Clubcard
- Sainsbury’s with Nectar
- Morrisons with More
- Morrisons
- Ocado
- Waitrose
- Tesco
- Sainsbury’s
This investigation highlights the critical importance of loyalty schemes in modern grocery shopping, revealing that without them, consumers may face unexpectedly high costs even at mainstream supermarkets.
