Friday, October 25, 2024

Retailers under fire for excluding millions from lower loyalty prices

Leading high street retailers have been accused of excluding millions of customers from lower prices due to loyalty scheme restrictions.

Supermarkets and other retailers have come under fire for introducing a two-tier price structure as customers without a loyalty card are likely to pay more at the checkout.

An investigation by consumer website Which? found that a huge number of customers aren’t able to access those cheaper prices.

Two-tier pricing: Which? investigation finds millions are exempt from cheaper loyalty prices

Millions of shoppers are excluded from signing up due to criteria often beyond their control – minimum age requirements, having a UK residency or address, and needing an email address or app.

Researchers found customers have to be over 18 to join schemes run by Lidl, Sainsbury’s, Tesco and Waitrose but only need to be 16 at Co-op and Morrisons.

Shoppers under 16 can sign up for a junior membership with Co-op or Sainsbury’s or be added to a parent or guardian’s account to access the cheaper price tier.

Shoppers only need to be 13 to access Boots and Superdrug’s schemes.

The huge differences in requirements mean young carers and the homeless are excluded from lower prices at some stores.

Previous research by Which? found that some of the same retailers had ‘murky’ pricing and offered customers deals on items that had previously been discounted.

Similarly, it revealed that there are huge differences between the discounts offered by retailers.

While Superdrug’s loyalty prices offer an average third off the higher non-member price, supermarkets generally offered around a quarter off.

Which? Says it is concerned that large swathes of customers are being cut off from these deals due to their requirements.

They say that a 17-year-old single parent living alone would have to pay full price for baby food at some supermarkets.

Similarly, a homeless person would have to pay more for a meal deal at others. 

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.’

What do the retailers say?  

Leading supermarkets and retailers are shutting out millions of shoppers from their loyalty schemes, according to Which? 

This is what the retailers had to say: 

Boots 

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. Anyone aged 13 or above with a UK postal address can also join the Boots Advantage Card scheme. Members can benefit from personalised and exclusive offers in-store, online, through our app and in our mailings. 

Co-op 

Co-op told Which? that anyone of any age can become a member. For those under the age of 16, to become a Co-op member permission from a parent or guardian is needed. To become a member if under the age of 16, a temporary membership card can be purchased and registered over the phone – a parent or guardian must be present to give their permission during registration.

Lidl 

Lidl told Which? that their app Lidl Plus forms part of their commitment to providing customers with the best value, allowing them to further enhance their customer experience with new features and exclusive campaigns that go beyond promotions. 

They said this is on top of the fact that as a discounter, everything they do is designed to give households access to good food at low prices. Nonetheless, they remain mindful of those who don’t have access to a smartphone or tablet and continue to offer in-store promotions through our Pick of The Week offers. 

The age restriction in place is in line with legal requirements relating to elements within the app such as certain promotions or partner offers, including those where adult consent is required. Lidl says that they are not aware of any other schemes being as low as 12/13. 

Nectar 

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.

The spokesperson added that if a customer contacts the Nectar Helpline team they can manually register for a Nectar account without requiring an email address or mobile number. Additional Cardholders are required to be over 18, except where they are on the account of their parent or legal guardian.

Superdrug 

As an accessible retailer, we aim to offer great value to all our customers. Every month we give our loyal Health & Beautycard members access to hundreds of health & beauty products at a lower price. 

Delivery is only available to addresses within the UK and Republic of Ireland, therefore the Health & Beauty Card membership reflects this and is available to residents of the United Kingdom over the age of 13 or Republic of Ireland (over the age of 16). Customers can sign up and register for a physical H&B card or a digital card either in store, online or via the Superdrug app.

Superdrug also reiterated that you don’t need an address to become a member. Customers can sign up in store or online using their name and either an email address, address or phone number.

Tesco 

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.

Waitrose 

We work hard to give myWaitrose customers a broad range of benefits, including personalised vouchers, exclusive promotions, free hot drinks, magazines and more. 

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.

SAVE MONEY, MAKE MONEY

Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence. *Chase: 3.69% gross. Ts and Cs apply. 18+, UK residents

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