Warning that supermarket loyalty scheme ‘challenges’ could hinder not help your finances

A debt charity has raised concerns that enticing ‘missions’ and ‘challenges’ currently being set by Asda, Morrisons, Tesco and Sainsbury’s might encourage overspending, potentially leading customers into financial difficulties.

In light of this news, Tom Church, a personal finance expert from LatestDeals.co.uk, offers practical advice on how to shop smartly and use loyalty schemes to your advantage.

Loyalty programs such as the Tesco Clubcard and Morrisons More Card serve a dual purpose. They not only help customers save on their shopping but also offer substantial benefits to the supermarkets.

According to a 2020 survey, these loyalty schemes can boost revenue by up to 25 per cent annually from customers who redeem points.

"Supermarket shopping challenges are crafted to generate excitement and urgency, compelling shoppers to spend more in pursuit of rewards. While these incentives can be enticing, it's crucial to approach them with caution," said Tom Church.

“Many people feel pressured to meet spending targets to unlock additional benefits, which can lead to unnecessary purchases. The most effective way to genuinely save money is to adhere to your shopping list and stick to a budget.

“By doing this, you ensure that your spending is driven by your needs rather than the lure of rewards.”

Tom outlined several strategies to help consumers enjoy the perks of loyalty programmes, without leaving themselves out of pocket. Here are his tips for making wiser spending decisions on your next big shop:

Understand the true value of points

Many customers are compelled by the prospect of earning points, but not all point schemes are equally rewarding.

“Before running to the checkout, check which supermarkets offer the most points for your pound.

“For example, at Sainsbury’s, each Nectar point is worth 0.5p, meaning you need to spend £500 to get a £2.50 reward. In contrast, Tesco Clubcard points are worth 1p each, so you need to spend £150 to get a £1.50 voucher.”

Shop around

Loyalty cards can encourage you to shop at a single supermarket to build up your points, but Tom stresses the importance of shopping around:

“Loyalty shouldn’t mean exclusivity. I shop at seven different supermarkets including Poundland and B&M which most people don’t even consider. Prices can vary significantly, and by checking multiple stores, you can make sure you’re getting the best deals.

“Use free tools like the Latest Deals app to find discount codes for supermarkets like Morrisons. For example, I once found that M&S was cheaper than Aldi for basic items like eggs and sugar.”

Use independent tools

Independent tools provide an unbiased view of prices and discounts, helping you to shop smarter and save more money:

“Take advantage of independent supermarket comparison apps to save on your favourite items and get alerts when they go down in price. These tools can help you navigate through marketing tricks and focus on real savings.”

Bulk buy smartly

Tom notes that focusing on non-perishable essential deals can help you avoid unnecessary purchases:

“If a spending challenge offers you a worthwhile discount, use it on bulk-buying non-perishable essentials like pasta, rice, or tinned food. This way, you maximise savings without falling into the trap of buying things you don’t need.

“Last year, I saved over £50 by bulk buying cleaning products during a promotion. Also, consider Costco and Bookers that sell items in bulk for wholesale prices.”