Tesco and Sainsbury’s have hit back at claims that they are both using “dodgy” pricing tactics which can make their loyalty discounts seem better than they really are, while making huge profits from customer data.
Consumer group Which? launched an investigation tracking the pricing history of a dozen member-only offers at both supermarkets over a six month period, and claims that nearly a third (29%) of the promotions were at their ‘regular’ price less than half the time.
For Tesco Clubcard, this was 24% of 70 products, while for Sainsbury’s Nectar Card, it was 34% of 71 products, showing that customers are often not saving money.
The investigation specifically uncovered a string of what Which? called “particularly dubious deals”, such as branded products like Andrex Classic Clean at Sainsbury’s – having a Nectar price of £5.25 and a regular price of £6.25.
However, its “regular” price was £6.25 for less than three weeks before the Nectar offer started, but before that, it was £5.75.
Similarly at Tesco, Heinz Salad Cream has a Clubcard price of £3.50 and a regular price £3.90. However, its regular price had been £2.99 for several weeks, before it was increased to £3.90 just 22 days before the loyalty card promotion was launched.
In addition, the consumer group found that the “regular” Sainsbury’s price was higher than at other supermarkets – the same jar was £7, while at Morrisons, Ocado and Waitrose it was £6, £5.99 at Tesco and £5.49 at Lidl.
Which? has also questioned the comparative worth of the loyalty-scheme to supermarkets. For example, it says that Sainsbury’s data arm Nectar360 is predicted to make £90m profit by early 2026, from selling consumer data.
Meanwhile, it quotes Tesco’s DunnHumby group chief executive Ken Murphy, which once described its data as giving the supermarket “access new revenue streams from Clubcard”.
However, Which? does not claim this is unlawful and, perhaps unsurprisingly, fails to mentioned its own data-driven marketing operations or the fact that it makes millions of pounds a year from its subscription model.
In response to the findings, Sainsbury’s said that, due to inflation, many products had increased in price over the past six months and Sainsbury’s own inflation rate had been behind many of its competitors.
It added: “We make every effort to be transparent about how customer data is used at Nectar. Customers can find more information on this in the privacy policy on our website.”
Meanwhile, Tesco said all its Clubcard Price promotions followed strict rules, including looking at how they compared against prices at other supermarkets, to ensure they represented genuine value and savings. It said these rules had been endorsed by Trading Standards.”
Nevertheless, Which? said it had shared its findings with the Competition & Markets Authority.
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