Tesco and Sainsbury’s using ‘potentially dodgy tactics’ with loyalty card prices, Which? claims
Customer loyalty schemes at Sainsbury’s and Tesco are “not all they’re cracked up to be” with regular prices being inflated so promotions look better than they really are, according to a consumer champion.
Which? says the supermarket giants are using “potentially dodgy tactics” and has shared the findings of its investigation with the Competition and Markets Authority.
But the retailers have disputed the claims – arguing it had failed to take inflation into account, and Trading Standards rules had been followed.
Which? said it had tracked more than 140 Clubcard and Nectar card prices at Tesco and Sainsbury’s over six months.
About 29% of member-only promotions were at their so-called regular price for less than half of that period.
Which? identified three main problems around the regular price quoted for products on offer to customers with loyalty cards – that they were far more expensive than at other supermarkets, that they had been changed right before the promotion, or were only available for a short amount of time.
The research is part of the watchdog’s inquiry into the increasingly widespread use of loyalty card schemes across supermarkets, which only gives customers who are signed up access to the lower tier of pricing.
Among the deals of concern to Which? was a jar of Nescafé Gold Blend Instant Coffee (200g) advertised at Sainsbury’s for £6 with a Nectar card – a saving of £2.10 on the “regular” price of £8.10.
But the regular price had also been £6 at Sainsbury’s until it went up to £8.10 just two days before the Nectar price launched.
Which? also found the regular Sainsbury’s price was significantly higher than at other supermarkets, such as Asda, where the same jar cost £7, or at Morrisons, Ocado and Waitrose where it was available for £6.
It was even cheaper at Tesco (£5.99) and at Lidl (£5.49).
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In another example, Which? found Heinz Salad Cream (605g) at Tesco with a Clubcard price of £3.50 and a regular price of £3.90 – even though its regular price had been £2.99 for several weeks before it was increased to £3.90, 22 days before the Clubcard promotion.
Which? found the condiment has been its regular price for just 25 days out of 183, or 14% of the previous six months.
Overall, Which? found a third of the products at Sainsbury’s (34% of 71 products) were the “regular” price less than half the time over the previous six months.
At Tesco, the same was true for 24% of the 70 items analysed.
Which? said: “Tesco and Sainsbury’s are using potentially dodgy tactics on some of their loyalty offers which can give the impression that savings are more substantial than they really are.”
‘Flawed methodology’
A Sainsbury’s spokeswoman said: “Which? fails to recognise that base prices have been increasing throughout the year due to inflation. Our promotional rules around Nectar Prices are informed by the guidance from Trading Standards.
“The Nescafe Gold example demonstrates Which?’s flawed methodology as the claim that the ‘regular’ price was £6 is untrue.
“The base price of this item has been £8.10 since December 2022 and £6 was a promotional price throughout this year, including on Nectar Prices when it launched in April.”
A Tesco spokesman said: “All our Clubcard Price promotions follow strict rules, including considering how they compare against prices in the market, to ensure they represent genuine value and savings for our Clubcard members.
“These rules have been endorsed by our Trading Standards Primary Authority.”
Sue Davies, Which? head of food policy, said: “It’s not surprising that shoppers are questioning whether supermarket loyalty card prices are really a good deal, as our investigation shows that up to a third of loyalty offers at Tesco and Sainsbury’s are not all they’re cracked up to be.
“Which? is calling on supermarkets to make sure that their loyalty card prices don’t mislead and for the regulator to look more closely at this growing trend towards dual pricing. There is also the important issue of whether it is right for certain groups to be excluded from member-only schemes.”
Donald Trump has threatened to impose a 50% tariff on the EU, starting from next month, after saying that trade talks with Brussels were “going nowhere”.
Mr Trump made the comments on his Truth Social platform.
It marks a fresh escalation in his trade row with the European Union, which he has previously accused of being created to rip off the US.
While the US has done deals with the UK and China to reduce their peak exposure to his trade war, the president’s EU threat, which would cover all EU imports to the US, would risk retaliatory measures from Brussels if carried through.
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Mr Trump said of talks between his administration and the EU: “Our discussions with them are going nowhere! “Therefore, I am recommending a straight 50% tariff on the European Union, starting on June 1, 2025. There is no tariff if the product is built or manufactured in the United States.”
The European Commission was yet to respond to the remarks. Officials signalled there would be no comment until after a call between top US-EU trade figures due later on Friday.
Financial markets, however, were quick to take a view. European stock markets were sharply down across the board.
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The FTSE 100 in London was more than 1.2% lower shortly after the Truth Social post appeared, while Germany’s DAX and the French CAC 40 were in the red to the tune of more than 2%.
US stock markets fell at the open on Wall Street. The tech-focused Nasdaq was down more than 1%.
The potential for damage to the global economy saw Brent crude oil sink by more than 1% to $63 a barrel.
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The dollar took a hit too, as the news only intensified existing market worries this week about the sustainability of US government debt levels.
The pound was trading at levels last seen in February 2022.
Mr Trump said earlier that Apple will be forced to pay 25% tariffs on its iPhones unless it moves all its manufacturing to the US.
Apple shares dropped more than 2% in premarket trading after the warning, also posted on Truth Social.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else,” wrote the president.
“If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”
Production of Apple’s flagship phone happens primarily in China and India, which has been an issue brought up repeatedly by Mr Trump.
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On Thursday, the Financial Times reported Apple was planning to expand its India supply chain through a key contractor.
Taiwanese company Foxconn is planning to build a new factory in the Indian state of Tamil Nadu, according to the paper, to help supply Apple.
Sky News has contacted Apple for comment.
Business
Trump’s latest phone negotiation tactic on tariffs likely to heighten EU retaliation threat
President Trump’s Friday flurry of pronouncements marks the return of negotiation by smartphone and may trigger another period of profound uncertainty for international trade and financial markets.
The threat of 50% tariffs against the European Union, issued hours before his trade representative met their European counterparts, is a show of presidential muscle surely designed to strongarm those on the other side of the table.
It is an escalation likely to heighten the threat of retaliation from Europe, and with a few keystrokes ends the brief period of calm that had returned to global trade and markets in recent days.
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Talks in Switzerland between US and Chinese delegations a fortnight ago took the sting out of Sino-American hostility, negotiating three-figure tariffs that amounted to a mutual trade embargo down to manageable levels.
Financial markets had regained most of the losses sparked on ‘Liberation Day’ in April, when Donald Trump declared total trade war, and there was optimism that for all his bluster, there might be meaningful room for constructive compromise.
The UK even secured a deal of sorts, securing a reduction in auto tariffs in exchange for a reciprocal opening of agricultural markets.
There will be no such deal for the EU in a hurry. A 50% tariff on all exports to the US is not only higher than the original threatened blanket tariff of 20% and double Mr Trump’s proposed 25% on European cars, it’s higher even than China.
European stocks predictably ended the week in decline, with car manufacturers including BMW, Volkswagen and Stellantis all down.
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It remains to be seen whether this threat will stick.
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Mr Trump has repeatedly blinked first in the trade war he started, backing down on global reciprocal tariffs when bond markets rebelled before caving in Geneva to reach an accommodation with China.
His grievances with Europe appear to have an extra edge however, and the consequences of the uncertainty he’s sparked will be far-reaching.
If this was the only thing he had announced on ‘Liberation Day’ it would still have been huge.
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