Supermarket Loyalty Prices: Are You Actually Saving Money?

By Al Baker | Founder & Editor, The Penny Pincher - Last checked: the 30th of September 2026.

Supermarket loyalty prices have become a normal part of grocery shopping. Tesco, Sainsbury’s, Morrisons, Co-op, Waitrose and other supermarkets now offer selected products at a lower price when you use the relevant loyalty card or account.

That has also created plenty of debate about whether those discounts are really as good as they look. Aldi doesn’t use the same type of loyalty pricing, and its UK boss Giles Hurley has recently criticised rival supermarkets’ loyalty prices, arguing that shoppers should look beyond the discount shown against the non-member price.

The evidence is more nuanced than saying supermarket loyalty prices are either fake or always a bargain. Most of the offers examined by the regulator were genuine savings, but that still doesn’t mean the member price in front of you is automatically the cheapest way to buy the product.

Are Supermarket Loyalty Prices Genuine Savings?

For most of the offers examined by the regulator, yes. The Competition and Markets Authority checked around 50,000 loyalty-priced products across Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons and found that 92% represented a genuine saving against the usual price of the product at that retailer.

Average member savings across the five supermarkets were between 17% and 25%. The CMA also found very little evidence that supermarkets were routinely raising their normal prices to make a loyalty promotion appear more generous.

That is worth knowing because 55% of shoppers surveyed as part of the review believed non-member prices were being inflated during loyalty promotions. The regulator’s findings suggest that suspicion was much more widespread than the evidence it found.

That still doesn’t mean every supermarket loyalty price is automatically good value. Prices and promotions change constantly, so you still need to judge the particular deal sitting in front of you.

Can a Genuine Loyalty Price Still Be More Expensive Elsewhere?

Yes. A loyalty price can be a genuine reduction from that supermarket’s usual selling price while another shop still offers a cheaper way to buy the same thing.

The CMA’s wider analysis of supermarket loyalty pricing found that loyalty prices were generally the same as or cheaper than the lowest price for the identical product elsewhere. It also found some cases where shoppers could pay considerably less for a product at another supermarket.

There is another complication when you compare Tesco or Sainsbury’s with Aldi or Lidl. You often won’t be comparing the same branded product, so the more useful question may be whether a cheaper own-brand alternative gives you what you need for less money.

That is why two apparently conflicting claims can both be true. A Clubcard or Nectar price can be a real discount while Aldi, Lidl or another supermarket still gives you a cheaper overall shop.

How Do Clubcard and Nectar Prices Compare With Aldi?

My latest cheapest UK supermarket comparison shows why looking at the final basket price matters more than looking at the loyalty discount alone.

In my August 92-item comparison, Sainsbury’s came to £185.55 using Nectar prices compared with £195.33 without them. That meant Nectar prices cut £9.78 from that particular basket.

Tesco came to £189.45 using Clubcard prices compared with £192.97 without them, so the loyalty prices reduced the basket by £3.52. Aldi still came out cheaper overall in that comparison, which shows that a genuine member saving doesn’t automatically make the supermarket itself the cheapest place to shop.

Your own basket may look completely different because what you buy matters. That is why I update the supermarket comparison regularly rather than assuming one retailer will always be cheapest.

How Can You Tell if a Loyalty Price Is Actually Good Value?

First, check that you are comparing like with like. Look at the size, weight, quantity and number of items in the pack, because a product can appear cheaper until you realise you are getting less for your money.

The unit price can make this much easier. A 25% loyalty discount on a premium 400g pack may still leave it more expensive per 100g than a standard 500g own-brand pack sitting nearby.

This matters even more when manufacturers change pack sizes. Comparing what you pay per 100g, kilogram, litre or item gives you a much better idea of value than looking only at the crossed-out non-member price.

You should also compare the alternatives you would realistically buy. If you are happy with an own-brand product that costs less, a large percentage discount on a branded product does not automatically make the branded one better value.

Should You Compare Loyalty Prices With Other Shops?

It can be worth doing, particularly when the item is relatively expensive or something you buy regularly. A quick online search or comparison tool can show whether the same branded product is available for less elsewhere.

Make sure you compare the full cost rather than the product price alone. If you are ordering groceries online, delivery charges, minimum spends and collection fees can change which option is actually cheapest.

The same applies if another retailer offers an extra saving such as cashback. Two shops may sell the same product for the same price, but one may give you an opportunity to earn money back on the purchase while the other doesn’t.

That can make a noticeable difference when you are spending more. It still only helps if the underlying product is competitively priced, so cashback should come after comparing the actual price rather than being the reason you choose a more expensive option.

Should You Use a Loyalty Price if You Already Shop There?

If you were already planning to buy the item from that supermarket and the loyalty scheme is free, using the member price will normally leave you better off than paying the non-member price. You are simply choosing the lower available price for something you were already going to buy.

The problem starts when the promotion changes your shopping behaviour. A product reduced from £5 to £4 has not saved you £1 if you only bought it because the loyalty label caught your eye.

In that situation, you have spent £4 that you had not planned to spend. The same applies if the promotion persuades you to buy a bigger pack, switch to a more expensive brand or add several extra products to your trolley.

A saving is only useful when it reduces the cost of something you actually wanted or needed.

Can You Use Cashback With Supermarket Loyalty Prices?

Sometimes. I regularly use supermarket cashback apps, and some offers can still work when you have also paid a supermarket loyalty price.

My guide to UK supermarket cashback apps covers services such as Shopmium, GreenJinn and CheckoutSmart. Offers change regularly, and eligibility can depend on the exact retailer, product and pack size.

Check the current offer before buying rather than assuming that a loyalty-priced product will qualify. Keep your receipt until the cashback has been accepted in case you need it for the claim.

I treat cashback as an extra saving after I have already decided that the product itself is worth buying. Paying more just because cashback is available doesn’t make financial sense if another suitable product is still cheaper overall.

What I Check Before Buying a Loyalty-Priced Product

I start with the price I will actually pay after using the loyalty card. I then check the pack size and unit price, compare it with the nearest sensible alternative and ask whether I would have bought the product without the discount.

For a more expensive item, I would also compare the price elsewhere and take delivery charges, collection costs and any genuine cashback opportunity into account. It is worth checking return terms too where they are relevant, particularly if you are buying a non-food product from a supermarket website.

Most importantly, make sure the purchase still fits your budget. A lower promotional price doesn’t always mean you are getting the best deal if there are extra costs, a smaller pack or a cheaper suitable alternative available elsewhere.

If you are buying something purely because it looks cheap, it is not really saving you money. It is an extra expense.

Frequently Asked Questions

Are supermarket loyalty prices fake?

No, not generally. The CMA found that 92% of around 50,000 loyalty-priced grocery products it analysed offered a genuine saving against the usual price at the same retailer. That doesn’t mean every current offer is automatically good value, so it is still worth comparing the final member price with realistic alternatives.

Are Clubcard Prices always cheaper than Aldi?

No. A Clubcard Price can be a genuine reduction at Tesco while Aldi still sells an equivalent basket or alternative product for less. My own supermarket comparison has shown Tesco loyalty prices reducing its basket while Aldi still came out cheaper overall.

Do I need a loyalty card to get supermarket member prices?

Yes, where a supermarket labels an offer as a member-only price, you will normally need to use the relevant loyalty account at the till or link it to your online shop. Access options vary between schemes, so check whether a physical card is available if you do not want to rely on an app.

Are Nectar Prices genuine savings?

They can be. The CMA found that the vast majority of loyalty prices it examined across participating supermarkets were genuine reductions, and my own supermarket comparison has shown Nectar prices reducing the cost of a Sainsbury’s basket. That still doesn’t mean Sainsbury’s will be cheapest for every product or household.

Should I compare supermarket unit prices?

Yes. Unit pricing lets you compare products sold in different pack sizes by showing what you are paying for a set quantity, such as 100g, 1kg, 1 litre or one item. It can reveal that a product with a bigger loyalty discount is still more expensive for the amount you actually receive.

Can I use supermarket cashback with a loyalty price?

Sometimes. Some receipt-based cashback offers can still apply when you have paid a supermarket loyalty price, but each offer has its own retailer, product, pack-size and other conditions. Check the current offer before buying and keep your receipt until the cashback has been approved.