BIG SPENDER
Urgent warning over supermarket spending challenges including Clubcard and Nectar – what to look out for
You could end up in the red as a result of promotions
SHOPPERS taking part in supermarket spending challenges could see their budgets negatively impacted, consumer groups have warned.
Customers at some of the biggest grocers can sign up to the chains'’ individual loyalty schemes.
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These schemes usually offer points in return for spending which can be used to get money off at the till.
Members are also offered personalised special discounted prices. For example, Tesco gives so-called Clubcard prices while Sainsbury’s offers special Nectar prices.
However, shoppers can also be offered special loyalty points for buying certain products or hitting spending targets.
These promotions could be harmful as they could lead to overspending, consumer groups have said.
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Tesco, Sainsbury’s, Asda and Morrisons all offer the bonus points when spending targets are hit.
Ele Clark, retail editor at consumer group Which, said: “With many families struggling to make ends meet, it’s important supermarkets don’t go overboard and encourage shoppers to spend beyond their means in order to access rewards.
“Which? highlighted a number of issues in relation to loyalty pricing in a recent investigation and we are pleased that the Competition and Markets Authority has subsequently launched a review to understand better how this is operating in the grocery sector.
“It's crucial that consumers can easily compare prices and assess what's best value for their needs.”
At the same time, Simon Trevethick, head of communications at StepChange, said: “While retailer loyalty schemes can provide helpful discounts for customers, there’s a risk that if spending is incentivised, people may end up spending more than they had initially planned or can afford.
“If you are struggling with debt, free and impartial advice is available from charities like StepChange.”
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A Tesco spokesperson said: “We are constantly looking for ways to make Clubcard work harder for our customers. And with Clubcard Prices on around 8,000 products, it is already saving customers up to £360 on the annual cost of their groceries.
“Our new Clubcard Challenges are all about rewarding customers for buying the products they regularly purchase – and in doing so giving them up to £100 to spend with our Reward Partners on days out, meals and family activities ahead of the summer holidays.
“There’s no obligation for our customers to take part in Clubcard Challenges and they'll be able to decide whether they want to take part or not."
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A Sainsbury’s spokesperson said: “Nectar offers lots of different ways for customers to boost their points and save money when they shop with us throughout the year. For example, customers can save an average of £12 on an £80 shop with Nectar Prices and earn bonus points regularly through the Nectar app.
“The Shop for Points challenge gives selected customers an extra way to earn bonus points when they shop in-store or online. Bonus points are issued based on the number of shops customers complete, with a minimum qualifying spend of £1 per shop.’’
The Sun also contacted Morrisons and Asda for comment.
What can I get with Tesco Clubcard?
TESCO'S Clubcard scheme allows shoppers to earn points as they shop.
These points can then be turned into vouchers for money off food at the supermarket, or discounts at other places like restaurants and days out.
Each time you spend £1 in-store and online, you get one point when you scan your Clubcard.
Drivers using the loyalty card get one point for every two litres spent on fuel.
One point equals 1p, so 150 points gets you a £1.50 money-off voucher, for example.
You can double their worth when you swap them for discounts with "reward partners".
For example, £12 worth of vouchers can be swapped for a £24 three-month subscription to Disney+.
Or you can swap 50p worth of points for £1 to spend at Hungry Horse pubs.
Where you can spend them changes regularly, and you can check on the Tesco website what's available now.
Tesco shoppers can also get Clubcard prices when they have the loyalty card.
The discounted items change regularly and without a Clubcard you'll pay a higher price.
These Clubcard prices are usually labelled on shelves, along with the non-member price.
But it's worth noting that just because it's discounted doesn't necessarily make it the cheapest around, and you should compare prices to find the best deal.
You can sign up to get a Tesco Clubcard in store or online via the Tesco website.
How to shop without blowing your budget
It’s a good idea to make a shopping list before you start supermarket shop – it’s one of the best ways to stop yourself from getting tempted into buying products, you don’t need or can’t afford.
A deal is only a good one if you were going to buy it to begin with.
Sign up to loyalty schemes to make sure you don't miss out on discounted prices and so that you can collect points.
But remember that any points earned on buying extra items will only be worth a fraction of the item you have bought.
If you are worried about debts or need help budgeting, you can get free advice at charities including:
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- Citizens Advice - 0800 144 8848 (England) 0800 702 2020 (Wales)
- StepChange - 0800138 1111
- National Debtline - 0808 808 4000
- Debt Advice Foundation - 0800 043 4050
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.