Asda has been identified as the most cost-effective supermarket in the UK for purchasing major brand products, surpassing competitors such as Tesco, Sainsbury’s, and Morrisons in a study conducted by consumer organization Which?
Despite facing a decline in market share, Asda managed to outperform its competitors even when factoring in the special pricing offered by rival loyalty programs. The analysis by Which? highlighted the impact of loyalty schemes like Tesco’s Clubcard and Sainsbury’s Nectar, showcasing significant price discrepancies for non-members compared to the discounted prices for cardholders.
The research, analyzing 241 popular branded items like Heinz, Nescafé, and Mr Kipling, revealed that the total cost at Asda in March was £813.16. Tesco, on the other hand, presented a higher total of £824.62, including discounts for Clubcard holders on specific products, whereas non-Clubcard customers faced a bill of £911.64 – almost £100 more expensive. Sainsbury’s totalled £849.08 with a Nectar card and £933.82 without one, while Morrisons’ prices were £857.89 with a More card and £860.03 without.
For two consecutive months, Which? found that Tesco and Sainsbury’s were pricier than Waitrose (£902.83) for shoppers without a loyalty card. While discounters Aldi and Lidl are typically the most affordable supermarkets overall, they were excluded from this study due to their limited selection of branded goods.
The analysis also highlighted significant price gaps for shoppers not utilizing loyalty cards due to concerns regarding data privacy or eligibility. For instance, a 90g tin of Nescafé Azera Americano instant coffee cost £3.50 with a Tesco Clubcard but doubled to £7.25 for non-members, marking a 107% difference. Similarly, Colgate Plax Cool Mint Mouthwash (500ml) was priced at £2.47 for Tesco Clubcard holders but averaged £4.50 for non-loyalty members at Tesco and Sainsbury’s, an 82% difference.
Reena Sewraz, Which? Retail Editor, emphasized that Asda has outperformed major loyalty programs for the second consecutive month, offering the best prices for branded goods. Sewraz highlighted the unpredictability for brand loyal customers across various supermarkets and praised Asda’s straightforward pricing for providing a reliable option without the need for a membership card.
In response, a Sainsbury’s spokesperson emphasized their commitment to delivering value through initiatives like Nectar Prices and Aldi Price Match. Tesco’s spokesperson highlighted the benefits of Clubcard Prices and competitive pricing strategies, while Waitrose stressed their consistent value offerings and promotions on a wide range of products.
The research data presented a comparison of prices for 241 groceries across different supermarkets, illustrating the cost variations and the impact of loyalty programs on consumer spending.
