92% of Products in Study Showed Legitimate Discounts, Despite Data Concerns

  • 92% of supermarket loyalty schemes offer genuine savings, CMA finds
  • People’s concerns about data usage did not stop them from joining a scheme
  • 50,000 grocery products analyzed for the study
  • 17-25% average saving on loyalty priced products at five supermarkets
  • 76% of shoppers say loyalty pricing doesn’t change where they shop
  • 43% think loyalty scheme members pay lower prices than non-members
  • Improvement needed for accessibility to loyalty schemes

The Competition and Markets Authority (CMA) has found that the majority of supermarket loyalty schemes offer genuine savings on products. Analyzing around 50,000 grocery items, the CMA discovered little evidence of inflated ‘usual’ prices to make loyalty promotions seem more attractive. The study aimed to address concerns about trust, fairness, and accessibility. While 7% of surveyed individuals avoided schemes due to data worries, 43% believe loyalty members pay lower prices than non-members. Despite this, only 24% change their shopping habits based on loyalty pricing. CMA suggests improving accessibility for those without smartphones or under 18s.

Factuality Level: 10
Factuality Justification: The article provides accurate and objective information based on the Competition and Markets Authority’s investigation of loyalty pricing in supermarkets. It presents data from the analysis of around 50,000 grocery products, consumer survey results, and quotes from an executive director of Consumer Protection. The article is focused on the main topic without digressions or irrelevant details, and it does not include any personal perspective presented as a universally accepted truth.
Noise Level: 3
Noise Justification: The article provides relevant information about the Competition and Markets Authority’s investigation into loyalty pricing in supermarkets, offering evidence-based findings on the genuine savings offered by loyalty schemes and consumer behavior. It also highlights areas for improvement regarding accessibility of these schemes. The article stays on topic and supports its claims with data and examples from the survey conducted.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the findings of an investigation by the Competition and Markets Authority (CMA) on loyalty pricing in supermarkets, which can impact consumer behavior and spending habits. It mentions specific supermarkets like Tesco, Sainsbury’s, Waitrose, Co-op, and Morrisons. While it does not directly affect financial markets, it is relevant to financial topics as it relates to consumer spending and cost of living pressures.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk