Watchdog Which? is demanding change as millions of shoppers are being excluded from accessing lower prices due to loyalty scheme restrictions
In recent years, several major firms have brought in cards and apps that offer lower pricing for users. This has been described by some consumer experts and groups as ‘two-tier’ pricing, while there have been questions around whether or not the original price for those not part of the schemes have been elevated.
And now an investigation by watchdog Which? has found people are being excluded from signing up to these schemes due to various restrictions. This is down to three main criteria beyond their control – minimum age requirements, having a UK residency or an address and needing an email address or an app.
Which? looked at terms and conditions for the UK’s biggest supermarkets offering two-tier loyalty prices, as well as health retailers Boots and Superdrug.
Researchers found that customers have to be 18 or over to join loyalty schemes at Lidl, Sainsbury’s, Tesco and Waitrose but only need to be 16 at Co-op and Morrisons. For Co-op and Sainsbury’s, consumers under 16 can get a junior membership or be added to a parent or guardian’s account to access loyalty scheme prices.
Shoppers only need to be 13 to access the Boots and Superdrug schemes. There are also big differences in address requirements and whether or not digital access is needed.
The discounts available through loyalty schemes can be significant, between 10 and 33% on average, according to Which?’s research in August 2024. However, due to the restrictions, several vulnerable groups in society such as young carers and the homeless are excluded from these lower prices at some stores.
They will find themselves paying more for some everyday products, from cheese and milk to vegetables and bread, as well as for other essentials such as feminine hygiene products.
One example is that a 17-year-old single parent living independently would not get a discount on baby food at some supermarkets, while a homeless person would have to pay more for a meal deal at others.
It could also mean that a couple without a smartphone or tablet shopping in Lidl could not get the lowest prices without the ability to download the app. Which? said the lower prices offered by loyalty schemes should be available to those who are ineligible to sign up through no fault of their own, and is calling on retailers to find a solution to this issue.
Harry Rose, Which? magazine editor, said: “Our research shows there are differences between supermarkets and retailers and their loyalty schemes, which mean some people could miss out on the lower prices offered because of factors such as minimum age requirements and needing an email address.
“All retailers should prioritise making their best deals accessible to all customers by implementing changes to their conditions for signing up.”
The firms were approached for comment. A Boots spokesperson said: “At Boots we are committed to providing great prices and value for money for all customers through a wide range of deals, discounts and promotions.”
Co-op told Which? that anyone of any age can become a member. Lidl said they remain mindful of those who don’t have access to a smartphone or tablet and continue to offer in-store promotions through its Pick of The Week offers.
A spokesperson for Nectar, the loyalty scheme at Sainsbury’s, said: “We strive to make it as easy and convenient as possible for customers to join Nectar. You can sign-up in several ways, including via our website or mobile app, registering in-store with one of our colleagues, or by contacting our Nectar Helpline team over the phone.”
A Superdrug spokesperson said: “As an accessible retailer, we aim to offer great value to all our customers” and reiterated that you don’t need an address to become a member.
A Tesco spokesperson said: “Clubcard unlocks the best value at Tesco, with shoppers able to save £360 a year thanks to Clubcard Prices*. It is easy and free to sign up and join the 22 million UK households who already have a Tesco Clubcard.”
A Waitrose spokesperson said: “Our digital approach allows us to personalise offers and share benefits quickly, easily and securely. Our age and address requirements are in line with some other retailers and reflect our store locations.”
