Tesco and Sainsbury’s Go Head-to-Head in Loyalty Points Showdown
Here’s a twist in the supermarket wars: Britain’s Advertising Standards Authority (ASA) has sided with Tesco after Sainsbury’s filed a complaint over a Clubcard ad. The ad, which showed up on digital posters across the UK, boldly claimed that customers get £1 in value from 100 Clubcard points compared to just 50p from 100 Nectar points, both when redeemed for groceries.
Sainsbury’s cried foul, arguing the comparison was unfair and left out a crucial detail—how points are actually earned. They said Nectar’s system offers bonus points for things like buying more fruit and veg or completing special offers, so the straight-up math ignores these advantages. Sainsbury’s insisted this could easily mislead shoppers trying to judge which supermarket gives them a better deal overall.
ASA Sides with Tesco, Backing Clubcard Value Claims
Tesco pushed back, saying shoppers aren’t in the dark about how loyalty schemes work, and pointed to a 2023 shopper survey to back them up. Their defense? The ad’s small print clearly said the comparison was for standard point redemptions on groceries and didn’t cover every extra bonus or quirk in either scheme. The ASA agreed, highlighting that average consumers would understand the comparison focused on the regular cash value of a single point, not fancy extras or temporary deals. They decided the ad wasn’t misleading and Tesco had done enough to clarify how the calculation worked.
The timing isn’t random. Tesco is ramping up its Clubcard strategy with a trial for more personalized discounts for members, zeroing in on what each shopper buys regularly. These targeted price cuts are set to keep Clubcard holders hooked. Sainsbury’s, not to be outdone, launched its own Nectar Prices last year, promising discounts on big shops and claims of savings up to £12 for larger hauls. The rivalry between the two remains fierce, with price-savvy shoppers reaping the benefits of the competition.
There’s real money at stake, according to Tesco, which says Clubcard users could pocket up to £385 in savings per year if they use the program to its full potential. Sainsbury’s, meanwhile, keeps plugging the overall value of their *Nectar* program, even as the ASA puts this latest ad squabble to bed. Both stores know that, in the battle for loyalty, small details can make a big difference. And with every point and pound under scrutiny, it doesn’t look like this supermarket rivalry will cool down anytime soon.
