Aldi chief backs crackdown on supermarket loyalty discounts

Giles Hurley, chief executive of discount grocer Aldi, has publicly backed the UK government’s plan to curb “misleading” discounts that do not deliver real‑term value. Speaking over the weekend, Hurley warned that many loyalty‑card offers from rivals give shoppers the illusion of a deal while the final price can still be higher than competing stores.

Aldi’s stance on loyalty pricing

Aldi is one of the few British supermarkets that does not run a loyalty‑card scheme. Hurley argued that such programmes encourage shoppers to focus on the amount saved rather than the amount spent. He said:

The problem with loyalty pricing is that it encourages shoppers to focus on how much they’ve supposedly saved, rather than how much they’ve actually spent. Taking £2 off a £6 product doesn’t make it good value if you can buy it for £3 somewhere else.

His comments come as the government, led by John Healey, threatens to intervene if retailers exploit geopolitical events, such as the Iran war, to justify price hikes.

Tesco and Sainsbury defend their schemes

Tesco and Sainsbury’s, which together hold the largest market share in the UK, have defended their Clubcard and Nectar programmes respectively. A source close to Tesco said the chain follows strict rules to ensure discounts represent genuine savings compared with rival prices. The Competition and Markets Authority (CMA) found that loyalty discounts across five major grocers delivered 17‑25 % savings on average, although it noted that some items were still priced above the cheapest alternative.

Sainsbury’s points to a similar analysis and claims to offer the widest Aldi price‑match range among UK supermarkets. Both retailers highlight the annual savings potential of their cards, up to £404 for Clubcard users and £450 for Nectar members, according to their latest reports.

Regulatory and industry response

The British Retail Consortium (BRC) said it would challenge any unfounded accusations of profiteering but welcomed efforts to stop “fake” discounts. Jim Bligh, the BRC’s corporate affairs director, remarked: “UK supermarkets are perhaps the most competitive in the world, and it’s that competition that means UK shoppers have some of the lowest prices in Europe. Competition between retailers is also keeping food price inflation down, despite huge supply chain challenges and rising costs imposed by the government.”

Analysts expect the CMA may expand its scrutiny of loyalty pricing, potentially prompting supermarkets to revise how discounts are advertised. For shoppers, clearer pricing could mean easier price comparison and less reliance on loyalty points to gauge value.

For a deeper look at Aldi’s position, see Aldi chief backs government move against misleading supermarket discounts.