ARE LOYALTY CARD CHANGES GOOD OR BAD For Your Money?

THE LAST YEAR has seen significant changes to the way big loyalty schemes work, most recently at Tesco, Sainsbury’s, Boots and Morrisons. There’s been the growth of “member-only” pricing, though those gains have been offset by changes to the value of some points schemes

- Andy Webb

Of course, if you’re already shopping at these retailers it makes sense to sign up for a card and swipe it at the till. You may as well get something back for your spending. The amount you earn won’t be life-changing, but the little amounts will add up.

However, I wouldn’t shop at any retailer just because you want to earn points. It’s better to shop around to see who will actually charge you less. And don’t underestimate the time savings you’ll get from shopping at a nearby supermarket rather than going out of your way for these schemes.

I’d also urge you to view the member-only discounts with some scepticism. The likes of Clubcard Prices and Nectar Prices will make items you buy with a loyalty card cheaper than without, but they are only on selected products. You might find you can pay less or get better value if you buy a different brand or size—even if it’s not part of these schemes. Remember, own-brand products are often much cheaper than the equivalent from the big names.

With all this in mind, here’s what you need to know about the most recent changes to the big schemes.

Tesco Clubcard

You will still earn one point per £1 spent in-store, which works out as 1% back if you use those points at the supermarket.

But the popular way to boost this to 3% through swapping them for things like magazines, days out and meal vouchers was devalued to 2% back in June.

Though that’s still more than what you’ll get at most supermarkets, don’t just assume that doubling your points is good value. Many of the things you can exchange them for can be obtained via special offers elsewhere, so you might not be getting a 2% return in real terms.