Sainsbury's has made a dramatic U-turn, scrapping its controversial trial of artificial intelligence (AI) to set personalised prices for shoppers holding its Nectar loyalty card.
The scheme, which was tested exclusively in London and Bath, used an algorithm to offer individualised discounts on products. Rather than receiving a standard offer, customers would see prices tailored specifically to their shopping habits.
The supermarket giant has now pulled the plug on the experiment following significant customer discontent. Shoppers expressed frustration and confusion over the lack of transparency, with many dubbing the trial 'secretive' for not making it explicitly clear that prices could vary dramatically from person to person.
A Sainsbury's spokesperson confirmed the trial's end, stating: "We have ended our small trial of personalised Nectar Prices. We're always listening to our customers and testing new innovations to help us offer great value... We will continue to offer fantastic universal prices and weekly offers, as well as personalised Bonus Offers through the Nectar app."
This retreat highlights the delicate balance supermarkets must strike between using technology for commercial gain and maintaining customer trust. The concept of dynamic pricing, while common in industries like travel, is still viewed with suspicion by many UK grocery shoppers.
The news follows a similar, albeit larger-scale, move by rival Asda, which recently announced it was ending its own loyalty programme trial. This suggests a broader industry hesitation to fully embrace AI-driven personalised pricing for fear of alienating a cost-conscious customer base during a prolonged cost-of-living crisis.
For now, Sainsbury's has reaffirmed its commitment to more traditional forms of discounts and its popular weekly offers, ensuring all customers in its trial areas now have access to the same prices.
