Loyalty schemes often promise great savings, but are they as good as they seem?
Recent investigations have revealed how some retailers may be inflating non-member prices to make discounts look better than they are.
Loyalty cards and schemes are becoming increasingly popular, with retailers offering seemingly attractive discounts to those who sign up.
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New users can currently get a bonus when they sign up.
Claim sign-up bonusHowever, recent investigations by Which? have uncovered some concerning practices that might make you question whether these deals are as good as they appear.
The Investigation
Which? analysed nearly 12,000 products across various supermarkets and health and beauty retailers, including Superdrug, Boots, Tesco, and Co-op.
The findings revealed that some products were sold at a so-called “discounted” price for loyalty card members, but the original, higher prices for non-members had only been in place for a short time.
This raises doubts about the authenticity of the discounts.
Key Findings
- Superdrug: one in six items was offered at a reduced price for more than three months, but the original higher prices were often in place for only a short period.
- Boots: similar issues were found, with 649 products seeing a price hike on the same day a loyalty scheme was introduced.
- Supermarkets: Tesco, Sainsbury’s, and Co-op also showed questionable practices, with non-member prices often appearing inflated just before a loyalty promotion began.
Are these discounts genuine?
The discounts offered through these schemes can look impressive, but when the original prices are artificially inflated, the savings might not be as significant as they seem.
For instance, a product might be sold at a non-member price of £70 for just a few days before dropping to £50 for loyalty card holders.
However, the product might have been available for everyone at £50 or less before the supposed discount.
Consumer confusion and concerns
Over half of the shoppers surveyed by Which? believed that non-member prices were higher than the usual prices for the same products.
Many were suspicious that retailers might be hiking up prices just to make the discounts look better, a tactic that can be misleading and unfair to consumers.
Calls for action
Which? is calling for updated guidance on how pricing laws apply to loyalty schemes.
The Competition and Markets Authority (CMA) is also urged to monitor these practices closely and take action against any retailers that flout the rules.
What retailers are saying
Retailers have defended their practices, stating that their loyalty schemes offer genuine savings and additional benefits.
For example, Boots highlighted that its Advantage Card customers can save on over 8,000 products, while Superdrug emphasised the value it offers through member-only prices and promotions.
Conclusion
While loyalty schemes can offer savings, it’s essential to stay vigilant. Always compare prices and be cautious of deals that seem too good to be true.
The real savings might not be as significant as they appear, especially if the original price was inflated.
