The article discusses the findings of a survey conducted by Retail Week in partnership with consumer research firm Walnut Unlimited, which aimed to understand shoppers' perceptions of supermarket loyalty schemes. Here are some key points from the article:
- While supermarkets have introduced next-generation loyalty schemes to reward their customers, a significant portion (42%) of consumers are unsure or disagree that loyalty card prices offer good value.
- The perception of value varies based on age groups, with younger and older shoppers more likely to view loyalty prices favorably compared to middle-aged groups, particularly UK families who conduct regular large shops.
- Women are more likely than men to feel that loyalty prices offer good value, likely because they are more likely to participate in loyalty schemes.
- A majority of UK shoppers have doubts about the genuineness of RRPs displayed next to loyalty prices, suspecting that prices may have been inflated to make the member price appear better.
- The Competition and Markets Authority (CMA) has announced an investigation into loyalty pricing by supermarkets to address concerns about potential price manipulation.
- Despite feelings of mistrust, 94% of consumers own at least one supermarket loyalty card, with Tesco being the most popular, followed by Sainsbury's Nectar, Morrisons More, and Asda Rewards.
- Some shoppers have changed their shopping behavior, such as abandoning a shop or altering their purchases, if they forget their loyalty card and cannot access member prices, indicating a shift from loyalty rewards to discounts.
Overall, the article highlights consumer skepticism towards supermarket loyalty schemes, especially regarding the perceived value of loyalty prices and concerns about price transparency. Retailers may need to address these issues to maintain trust and loyalty among their customer base.
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