Research has shown that shoppers at Tesco and Sainsbury’s face higher costs than those at Waitrose when they do not use loyalty programmes such as Nectar or Clubcard.
The consumer group examined a selection of 245 branded products including Heinz, Nescafé, and Mr Kipling during February and discovered that Sainsbury’s and Tesco charged the highest prices for customers who were not enrolled in their respective reward schemes.
The organisation noted that the majority of shoppers participate in loyalty programmes, but explained that certain consumers choose not to join due to concerns about data privacy, while others cannot participate because of specific eligibility requirements.
Under-18s cannot register for a Tesco Clubcard, though the retailer has indicated it will consider changing this policy before the end of the calendar year.
The survey found that the basket of goods cost the most at Sainsbury’s for shoppers without Nectar membership, reaching £942.66, which represents a 14% premium compared to the lowest-priced retailer in the investigation, Asda, where the same items cost £823.58.
Tesco came second, with non-Clubcard prices amounting to £916.56, placing it 11% above Asda’s pricing.
Both Tesco and Sainsbury’s, which are Britain’s two biggest supermarket chains, charged more for customers outside their loyalty programmes than Waitrose did, with Waitrose’s total reaching £899.05.
Waitrose was 9% pricier than Asda and was identified as a more competitive alternative, according to the research.
The consumer group stated the findings demonstrated the substantial pricing disparity resulting from loyalty-based pricing structures.
The investigation also revealed that Sainsbury’s customers using a Nectar card would pay just £848.56 for the full range of products, representing only a 3% markup relative to Asda.
According to Which?’s retail editor Reena Sewraz, the analysis uncovered a troubling reality about how loyalty schemes have transformed grocery pricing. She explained that well-known branded products can actually work out cheaper at Waitrose than at the nation’s largest supermarkets for shoppers who do not participate in loyalty programmes, which would have seemed implausible just a few years prior. For consumers set on particular brands, the most advisable approach is to compare prices across different stores, monitor the cost per unit carefully, and purchase in bulk whenever an attractive offer arises, as failure to do so typically results in significantly overpaying. Although loyalty cards undoubtedly provide some financial benefits, those who do not use one would be better served by shopping at Asda, where pricing on various branded goods tends to be more affordable.
A Sainsbury’s spokesperson stated that the company has spent over £1 billion in recent years to maintain low prices and that growing numbers of customers are selecting Sainsbury’s for their grocery shopping. The spokesperson emphasised the retailer’s commitment to helping shoppers access high quality at reduced prices and its focus on delivering value across thousands of products through its Aldi price match initiative, Nectar prices, Your Nectar Prices, and its own-label budget ranges.
A Tesco representative indicated that the Tesco Clubcard provides substantial savings for the 24 million British households holding one. Over 80% of purchases are made using a Clubcard, though this represents just one of the ways customers obtain good value. Through everyday low pricing, thousands of branded products remain consistently priced, and the Aldi price match guarantee gives shoppers confidence that they are receiving competitive rates.